CALLON DISCOVERY

Callon Petroleum's #3 discovery well on South Marsh Island Block 261 which was drilled as a replacement for the #2 well, that blew out earlier this year, has reported test results of 65 feet of net pay in a total of three pay zones. The #3 well was drilled by R&B Falcon's jackup, Falrig 20. Callon Petroleum has a 100% working interest in the #3 well. Production is expected to begin in the second quarter of 2000 through existing facilities on an adjacent block.
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