For
further information contact
John S.
Weatherly, CFO 1-800-451-1294
FOR IMMEDIATE RELEASE
Callon Petroleum Company Issues Guidance For Second Quarter, Full Year 2005
issuing guidance for the second quarter and full
year 2005.
Anticipated production for the second quarter of 2005 will
decline from first quarter levels as the result of previously scheduled
maintenance, repairs and other operations at the company’s primary producing
properties. This includes an anticipated
shut-in of the Habanero Field, in conjunction with maintenance to the host Auger
platform, which was recently rescheduled forward to the second quarter. The company confirmed its previously issued
production guidance for full year 2005 at a range having a mid-point of 70
million cubic feet of natural gas equivalent per day.
The guidance, found in the table below, is expressed in
ranges for the detailed components.
Second Quarter and Full Year 2005
|
||
|
Guidance Estimates |
||
|
(In thousands, except per production unit amounts) |
||
|
|
|
|
|
|
Guidance for 2nd Quarter 2005 |
Guidance for Full Year 2005 |
|
Estimated production
volumes: |
|
|
|
Natural gas (Bcf) |
2.2 - 2.4 |
10.5 - 11.5 |
|
Crude oil (Mbo) |
565 - 610 |
2,280 - 2,570 |
|
MMcfe/d |
62 - 67 |
66 - 74 |
|
|
|
|
|
Lease operating expenses: |
|
|
|
|
|
|
|
Cash |
$ 5,800 - $
6,400 |
$24,000 - $26,000 |
|
Non-cash |
-- 1 |
-- 1 |
|
Total |
$ 5,800 - $
6,400 |
$24,000 - $26,000 |
|
|
|
|
|
General and administrative
expenses: |
|
|
|
|
|
|
|
Cash |
$ 1,200 - $
1,400 |
$ 4,800
- $ 5,300 |
|
Non-cash |
450
- 550 |
1,900
- 2,200 |
|
Total |
$ 1,650 - $
1,950 |
$
6,700 - $ 7,500 |
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
Cash |
$
3,600 - $ 4,000
|
$14,800 - $15,900 |
|
Non-cash |
500
- 600 |
2,000 - 2,200 |
|
Total |
$
4,100 - $ 4,600 |
$16,800 - $18,100 |
|
|
|
|
|
Medusa Spar LLC, net of tax |
$
475 - $
550 |
$ 1,700 -
$ 1,900 |
|
|
|
|
|
DD & A – Oil and gas
properties |
$12,900 -
$14,400 |
$56,000 - $62,000 |
|
|
|
|
|
Accretion expense |
$ 840
- $ 930 |
$
3,000 - $ 3,300 |
|
|
|
|
|
Amortization of premiums on
derivative contracts |
$
500 - $ 560 |
$
1,500 - $ 1,700 |
|
|
|
|
|
Accrual income tax rate |
35% |
35% |
|
|
|
|
|
Cash income tax rate |
0% |
0% |
Listed below are the outstanding hedges for
natural gas and crude oil by quarter for the remainder of 2005.
FOR THE QUARTER ENDED
|
|
|
|
|
|
|
|
Natural Gas |
|
|
|
||
|
|
|
|
|
|
|
|
Collars |
Volume (Mmcf) |
900 |
900 |
300 |
|
|
|
Ceiling |
$
7.75 |
$
7.75 |
$
7.75 |
|
|
|
Floor |
$
5.50 |
$ 5.50
|
$
5.50 |
|
|
|
|
|
|
|
|
|
Floors |
Volume (Mmcf) |
1,470 |
1,470 |
690 |
|
|
|
Put Price |
$
5.00 |
$
5.00 |
$
5.00 |
|
|
|
|
|
|
|
|
|
Crude Oil |
|
|
|
||
|
|
|
|
|
|
|
|
Swaps |
Volume (Mbo) |
-- |
45 |
45 |
|
|
|
Strike
Price |
-- |
$
55.00 |
$ 55.00 |
|
|
|
|
|
|
|
|
|
Collars |
Volume (Mbo) |
135 |
135 |
135 |
|
|
|
Ceiling |
$
41.17 |
$
41.17 |
$
41.17 |
|
|
|
Floor |
$
33.00 |
$
33.00 |
$
33.00 |
|
|
|
|
|
|
|
|
|
Collars |
Volume (Mbo) |
45 |
91 |
91 |
|
|
|
Ceiling |
$
50.00 |
$
51.98 |
$
51.98 |
|
|
|
Floor |
$
40.00 |
$
40.00 |
$
40.00 |
|
|
|
|
|
|
|
|
|
Floors |
Volume (Mbo) |
171 |
21 |
21 |
|
|
|
Put Price |
$
35.00 |
$
35.00 |
$
35.00 |
|
The preceding guidance estimates contain assumptions that we believe are reasonable. These estimates are based on information that is available as of the date of this news release. We are not undertaking any obligation to update these estimates as conditions change or as additional information becomes available.
Callon Petroleum Company has been engaged
in the exploration, development, acquisition and operation of oil and gas
properties in the
This news release contains
projections and other forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. These projections and
statements reflect the company’s current views
with respect to future events
and financial performance. No assurances
can be given, however, that these events will occur or that these projections
will be achieved and actual results could differ materially from those
projected as a result of certain factors.
Some of the factors which could affect our future results and could
cause results to differ materially from those expressed in our forward-looking
statements include:
·
general economic conditions;
·
volatility of oil and natural gas prices;
·
uncertainty of estimates of oil and natural gas reserves;
·
impact of competition;
·
availability and cost of seismic, drilling and other equipment;
·
operating hazards inherent in the exploration for and production of oil
and natural gas;
·
difficulties encountered during the exploration for and production of
oil and natural gas;
·
difficulties encountered in delivering oil and natural gas to
commercial markets;
·
changes in customer demand and producers’ supply;
·
uncertainty of our ability to attract capital;
·
compliance with, or the effect of changes in, the extensive governmental
regulations regarding the oil and natural gas business;
·
actions of operators of our oil and gas properties;
·
weather conditions; and
·
the risk factors discussed in our filings with the Securities and
Exchange Commission, including but not limited to those in our Annual Report
for the year ended December 31, 2004 on Form 10-K.
The preceding estimates reflect our review of continuing
operations only. These estimates do not
take into account any material transactions such as sales of debt and equity
securities, acquisitions or divestitures of assets, and formations of joint
ventures. We continually review these
types of transactions and may engage in one or more of these types of
transactions without prior notice.
#