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Terry Trovato 1-800-451-1294

FOR IMMEDIATE RELEASE

Callon Petroleum Company Reports No Major Damage To Its Principle Production Facilities by Hurricane Katrina

Natchez, MS (September 1, 2005)--Callon Petroleum Company ( NYSE: CPE) reported today that the effects of Hurricane Katrina appear to have resulted in no major damage to its principal production facilities in the Gulf of Mexico.

Medusa Field - A helicopter reconnaissance flight revealed only minimal damage to the company’s Spar production facility at its Medusa Field. At this time, no assessment has been made regarding its pipelines nor has an estimate been given regarding the commencement of production at the facility. Callon owns a 15% working interest.

Habanero Field – The Company’s Habanero Field is produced through the Auger production facility operated by Shell Exploration & Production Company, a subsidiary of Royal Dutch/Shell Group (NYSE: RD). It was not affected by Hurricane Katrina and production was restarted yesterday at Auger. Production from the Habanero Field hopefully will commence within a few days. Callon owns an 11.25% working interest.

Mobile Bay Area – Based on a preliminary inspection, production facilities at Mobile Blocks 864, 952 and 955 appear to have incurred minor damage. Assuming no further problems, production should commence within the next several weeks. Callon owns a 66.4% working interest in the Mobile Block 864 Unit and a 100% working interest in Mobile Blocks 952 and 955.

High Island Block 119 Field – The field was not affected by Hurricane Katrina and was returned to production on August 29th. Callon owns a 22.2% working interest.

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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