Natchez, MS--(October 31, 2000)--Callon Petroleum Company (NYSE: CPE/CPE.PrA) announced today it has entered into a multi-year $75 million credit facility with First Union National Bank and Union Bank of California. The credit facility was arranged by Charlotte, North Carolina- based First Union Securities, Inc. At closing, $26.1 million was advanced under the new facility for repayment of existing debt.
The credit facility has an initial borrowing base of $50 million. The company's borrowing base will be redetermined periodically based upon, among other things, current-year production and reserve additions. The credit agreement contains various covenants and restrictions common to borrowings of this type as well as maintenance of certain financial ratios.
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.
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.
For further information contact: Terry Trovato P.O. Box 1287 Natchez, MS 39121 (601) 442-1601terryt@callon.com