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Terry Trovato 1-800-451-1294
FOR IMMEDIATE RELEASE
Callon Petroleum Company Redeems All Outstanding Shares
Of $2.125 Convertible Exchangeable Preferred Stock, Series A
Natchez, MS (July
15, 2005) — Callon Petroleum Company (NYSE: CPE/CPE.PrA) announced today that
it has redeemed all of its outstanding shares of $2.125 Convertible
Exchangeable Preferred Stock, Series A, which will result in an annual cash
savings of $1.3 million in future dividend payments.
Of the 596,671
shares of the company’s preferred stock outstanding on the date the notice of
redemption was mailed, holders of 571,108 shares elected to convert their
preferred stock into the company’s common stock at a conversion rate of 2.273
shares of common stock for each share of preferred stock. The company redeemed the remaining 25,563
shares of preferred stock outstanding on the redemption date at a redemption
price equal to $25.213 per share, plus $0.525347, representing all accrued and
unpaid dividends.
In
connection with the redemption, the company issued 1,297,726 shares of common
stock, plus cash payments of $1,477, representing payments for fractional
shares, to holders of preferred stock converting their shares into common stock
and paid a total of $657,949 to holders whose preferred stock was redeemed.
Callon Petroleum
Company has been engaged in the exploration, development, acquisition and production
of oil and gas 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.
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