Natchez, MS (November 7, 2000) -- Callon Petroleum Company (NYSE: CPE / CPE.PrA) announced today that an exploratory well testing the Cumberland Prospect on Green Canyon Block 297 in the Gulf of Mexico was unsuccessful. The company had a 7.5 percent working interest in the well. Drilling costs net to Callon are estimated to be $2.1 million and under full cost accounting rules will not be a direct charge to fourth quarter 2000 results.
The rig Noble Jim Thompson has commenced drilling the company's Moccasin Prospect, located on Garden Banks Blocks 253 and 297 and approximately five miles to the north of Callon's Habanero Discovery (Garden Banks Block 341). The company has a 12.5 percent working interest.
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