Callon Extends Exchange of 9.75% Senior Notes Due 2010

Callon Petroleum Company (NYSE:CPE)(NYSE:CPE.PrA) has extended its offer to exchange up to $200,000,000 in aggregate principal amount its 9.75% Senior Notes Due 2010, Series B, which were registered under the Securities Act of 1933, for a like principal amount of its 9.75% Senior Notes Due 2010, Series A. On July 2, 2004, a prospectus dated June 30, 2004 and a related letter of transmittal were mailed to all registered holders of the existing notes as of July 1, 2004. The exchange offer was scheduled to expire at 5:00 p.m., New York City time, on Monday August 2, 2004. The exchange has been extended to expire at 5:00 p.m., New York City time, on Thursday August 12, 2004.

As of August 2, 2004, $197,000,000 in aggregate principal amount of the Company's 9.75% Senior Notes, Series A had been tendered in the exchange offer.
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