For Immediate Release: Thursday, August 10, 2000

Callon Petroleum Company Reports Results For Second Quarter, First Six Months of 2000

Natchez, MS (August 10, 2000)- Callon Petroleum Company (NYSE: CPE / CPE.PrA) reported results of its operations today for both the quarter and the six-month period ended June 30, 2000.

Results for the three-month period ended June 30, 2000 include net income, before preferred stock dividends, of $3.2 million. After preferred dividends, the company reported net income of $0.21 per diluted share. This compares to net income, before preferred stock dividends, of $225,000 and, after preferred dividends, a loss of $0.04 per share on a diluted basis for the same period in 1999. Total revenues for the three-month period ended June 30, 2000 were $14.7 million compared to $9.0 million for the same period in 1999.

Operating results for the three-month period ended June 30, 2000 include oil and gas sales of $14.3 million from average production of 47.4 million cubic feet of natural gas equivalent per day (MMcfe/d). This corresponds to sales of $8.6 million from average daily production of 43.8 MMcfe/d during the same period in 1999. During the second quarter of 2000 natural gas represented approximately 90 percent of the company's total production. The average price received per thousand cubic feet of natural gas increased by 48 percent to $3.19 compared to $2.16 during the second three months in 1999, while the average price received per barrel of oil increased by 114 percent to $26.74 compared to $12.46 during the same period a year earlier.

For the six months ended June 30, 2000, the company reported net income, before preferred stock dividends, of $4.3 million. After preferred dividends, the company reported net income of $0.26 per diluted share. This compares to net income of $697,000 and, after preferred dividends, a loss of $0.08 per share on a diluted basis for the same period in 1999. Total revenues for the six-month period ended June 30, 2000 were $24.8 million compared to $17.4 million for the first six months in 1999.

Callon Petroleum Company has been engaged in the exploration, development, acquisition and operation of oil and gas properties in the Gulf Coast region since 1950.

						    

					







                             Callon Petroleum Company
                          Summary Revenues and Earnings
                     (In thousands, except per share amounts)


                                         Three Months Ended             Six Months Ended                                                                
                                              June 30                       June 30
                                              _______                       _______	
                                         2000          1999            2000          1999	
                                         ____          ____            ____          ____


Total revenues                        $ 14,716       $ 9,031        $ 24,834      $ 17,405	      		   
						 
Net income                            $  3,155       $   225        $  4,319      $    697 

Preferred stock dividends             $    552       $   555        $  1,105      $  1,386

Net  income (loss) available to 
   common shares                      $  2,603       $  (330)       $  3,214      $   (689)	   	         	                            
			    
Net income (loss) per common share:
   Basic                              $   0.21       $ (0.04)       $   0.26      $  (0.08)	                                                          
   Diluted                            $   0.21       $ (0.04)       $   0.26      $  (0.08)	   

Shares used in computing net 
income (loss) per common share:
   Basic                                12,171         8,447          12,163         8,462
   Diluted                              12,398         8,447          12,376         8,462                
	              	         	        					






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For further information contact:
Terry Trovato
P.O. Box 1287
Natchez, MS  39121

(601) 442-1601
terryt@callon.com