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Terry Trovato 1-800-451-1294

                         

FOR  IMMEDIATE  RELEASE

 

Callon Test Well at West Cameron Block 295

Encounters 150 Net Feet of Pay

 

Natchez, MS (July 21, 2005)--Callon Petroleum Company ( NYSE: CPE) reported today that an exploratory well testing a prospect on West Cameron Block 295 in the Gulf of Mexico encountered over 150 net feet of pay in two intervals. A production liner currently is being run for an anticipated completion.

 

The West Cameron Block 295 #2 exploratory well, located in 48 feet of water, was drilled to a total depth of 15,775 feet.  Each pay zone was encountered at the predicted depth and the 150 feet of net pay exceeded the anticipated thickness.  First production is expected during the fourth quarter of 2005.

 

“We are pleased with the results of our drilling program so far this year, and look forward to an active second half of 2005,” explains Fred Callon, Chairman and CEO. 

 

Callon owns a 20.5% working interest in the well.

 

Callon Petroleum Company has been engaged in the exploration, development, acquisition and production of oil and gas in the Gulf Coast region since 1950.  Callon’s properties and operations are geographically concentrated in the offshore waters of the Gulf of Mexico.

 

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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