For further information contact
John S. Weatherly, CFO 1-800-451-1294
FOR
IMMEDIATE RELEASE
Natchez, MS (September 3, 2003) --
Callon Petroleum Company (NYSE:CPE/CPE.PrA) announced today that it has signed
an agreement to participate in the formation of a limited liability company
(LLC), which will own a 75% undivided ownership interest in the deepwater
production spar on the Medusa Field in the Gulf of Mexico, subject to the
occurrence of certain events. Callon
will contribute its 15% undivided ownership interest to the LLC and will retain
a 10% ownership interest in the LLC. The LLC will earn a tariff based upon
production volume throughput. The
agreement is with Murphy Exploration & Production Company - USA, a
subsidiary of Murphy Oil Corporation (NYSE:MUR), and Oceaneering
International, Inc. (NYSE:OII). Two main
conditions must be satisfied for closing of this transaction to occur. The first is that the spar production
facility shall have met certain operational criteria. The second is securing non-recourse financing
for at least one-half of the spar’s cost.
Callon expects to realize cash
proceeds of approximately $25 million from the transfer to the LLC and the
proceeds of the non-recourse financing.
Closing of this transaction is expected to occur in the fourth quarter
of 2003.
The Medusa spar is moored in over
2,200 feet of water in the
Callon Petroleum Company has
been engaged in the exploration, development, acquisition and operation of oil
and gas properties 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.
#