For further information contact

Rodger Smith, 1-800-451-1294

 

FOR IMMEDIATE RELEASE

 

Callon Petroleum Company Issues Guidance For Third Quarter, Full Year 2005

 

 

 

      Natchez, MS (August 4, 2005)—Callon Petroleum Company (NYSE: CPE) is issuing guidance for the third quarter and full year 2005.

 

      The guidance, found in the table below, is expressed in ranges for the detailed components.

 

 

  

Third Quarter and Full Year 2005

Guidance Estimates

(In thousands, except per production unit amounts)

 

 

 

Guidance for

 3rd Quarter 2005

Guidance for

Full Year 2005

Estimated production volumes:

 

 

   Natural gas (Bcf)

2.0 - 2.2

10.0 - 11.0

   Crude oil (Mbo)

555 – 615

2,315 - 2,550

   MMcfe/d

58 – 64

65 - 72

 

 

 

Lease operating expenses:

 

 

 

 

 

   Cash

$ 6,000  -  $ 6,700

$24,800 - $26,100

   Non-cash

               --             1

                 --             1

   Total

$ 6,000  -  $ 6,700

$24,800 - $26,100

 

 

 

General and administrative expenses:

 

 

 

 

 

   Cash

$ 1,200  -  $ 1,400

$  4,800  - $ 5,400

   Non-cash

450  -        550

2,800  -    3,000

   Total

$ 1,650  -  $ 1,950

$  7,600  - $ 8,400

 

 

 

Interest expense:

 

 

 

 

 

   Cash

$  3,400  -  $ 3,800

$14,800 - $15,500

   Non-cash

500  -        600

2,000 -     2,200

   Total

$  3,900  -  $ 4,400

$16,800 - $17,700

 

 

 

Medusa Spar LLC, net of tax

$     375  -  $    425

$  1,800 - $  1,900

 

 

 

DD & A – Oil and gas properties

$12,400  -  $13,700

$56,000 - $61,000

 

 

 

Accretion expense

$     800  -  $    900

$  3,200 - $  3,400

 

 

 

Amortization of premiums on derivative contracts

$      350  - $    425

$  1,500 - $  1,600

 

 

 

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

 

 

9/30/05

12/31/05

Natural Gas

 

 

 

 

 

 

Collars

Volume (Mmcf)

900

300

 

Ceiling

 $     7.75

 $     7.75

 

Floor

 $     5.50

 $     5.50

 

 

 

 

Put

Volume (Mmcf)

      1,470

         690

 

Floor Price

 $     5.00

 $     5.00

 

 

 

 

Crude Oil

 

 

 

 

 

 

Swaps

Volume (Mbo)

              45

               45

 

Strike Price

$    55.00

$    55.00

 

 

 

 

Collars

Volume (Mbo)

135

135

 

Ceiling

 $    41.17

 $    41.17

 

Floor

 $    33.00

 $    33.00

 

 

 

 

Collars

Volume (Mbo)

91

91

 

Ceiling

 $    51.98

 $    51.98

 

Floor

 $    40.00

 $    40.00

 

 

 

 

Put

Volume (Mbo)

           21

           21

 

Floor Price

 $    35.00

 $    35.00

 

 

The preceding guidance estimates contain assumptions that we believe are reasonabl