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contact
John S. Weatherly, CFO
1-800-451-1294
FOR IMMEDIATE RELEASE
Natchez, MS
(December 18, 2003) -- Callon Petroleum Company (NYSE:CPE/CPE.PrA)
announced today that the formation of a limited liability company, Medusa Spar LLC,
which will own a 75% undivided ownership interest in the deepwater production
spar on the Medusa Field in the Gulf of Mexico, has been completed. Callon contributed its 15% undivided ownership
interest in the production facility to the LLC and retained a 10% ownership
interest in the LLC. The LLC will earn a tariff based upon production volume
throughput. The LLC is owned by Oceaneering International, Inc. (NYSE:OII), Murphy
Exploration & Production Company -
Callon will realize
cash proceeds of $25 million from the transfer to the LLC and the proceeds of related
non-recourse financing.
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.
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