Callon Completes $175 Million Credit Facility

Callon Petroleum Company (NYSE: CPE; NYSE: CPE.PrA) has closed on a three-year $175 million senior secured credit facility underwritten by the lender, Union Bank of California, N.A. The credit facility includes an initial borrowing base of $60 million, which will be adjusted on a quarterly basis throughout 2004 to reflect the results of intervening operations from the company's deepwater properties and an anticipated increase in proved producing reserves as the development of the company's Medusa property nears completion. At closing, $21 million was advanced under the new facility for repayment of existing debt.

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.