Callon Petroleum - No Major Damage to Its Principle Production Facility

Callon Petroleum Company says that the effects of Hurricane Katrina appear to have resulted in no major damage to its principle production facilities in the Gulf of Mexico.

Medusa Field - A helicopter reconnaissance flight revealed only minimal damage to the company's Spar production facility at its Medusa Field. At this time, no assessment has been made regarding its pipelines nor has an estimate been given regarding the commencement of production at the facility. Callon owns a 15% working interest.

Habanero Field - The Company's Habanero Field is produced through the Auger production facility operated by Shell Exploration & Production Company, a subsidiary of Royal Dutch/Shell Group

It was not affected by Hurricane Katrina and production was restarted yesterday at Auger. Production from the Habanero Field hopefully will commence within a few days. Callon owns an 11.25% working interest.

Mobile Bay Area - Based on a preliminary inspection, production facilities at Mobile Blocks 864, 952 and 955 appear to have incurred minor damage. Assuming no further problems, production should commence within the next several weeks. Callon owns a 66.4% working interest in the Mobile Block 864 Unit and a 100% working interest in Mobile Blocks 952 and 955.

High Island Block 119 Field - The field was not affected by Hurricane Katrina and was returned to production on August 29th. Callon owns a 22.2% working interest.


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