For further information contact John Weatherly, CFO 1-800-451-1294

FOR IMMEDIATE RELEASE

Callon Petroleum Company Declares Preferred Stock Dividend

Natchez, MS (December 19, 2001) -- Callon Petroleum Company (NYSE: CPE/CPE.PrA) announced today that its Board of Directors authorized quarterly dividends to be paid January 15, 2002 to shareholders of record on December 31, 2001 of its $2.125 Convertible Exchangeable Preferred Stock, Series A.

The dividend will be $0.53125 per share.

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.