Callon Successful Bidder on 12 Blocks at OCS Lease Sale #200

Callon Petroleum was the apparent high bidder on 12 offshore tracts at Outer Continental Shelf (OCS) Western GOM Lease Sale #200 conducted by the U.S. Department of the Interior's Minerals Management Service in New Orleans. Eight are located on the shelf and four are in the deepwater region. The company's successful bids totaled $3.7 million, and the results appear in the table below.

  Block /Number                    Partner                 Callon W.I.
  -------------                    -------                 -----------
Brazos Area A-46                     N/A                       100%
Brazos Area A-71                     N/A                       100%
Brazos Area A-75          Phoenix Exploration Company         33.3%
Brazos Area A-103         Phoenix Exploration Company         33.3%
High Island 200           Phoenix Exploration Company         66.7%
Matagorda Island 679      Phoenix Exploration Company         33.3%
Matagorda Island 707      Phoenix Exploration Company         33.3%
Matagorda Island 712      Phoenix Exploration Company         33.3%
Alaminos Canyon 20                   N/A                       100%
Alaminos Canyon 243                  N/A                       100%
Alaminos Canyon 244                  N/A                       100%
East Breaks 988                      N/A                       100%

Bids are subject to approval by the Minerals Management Service.

"We are excited with the results as we continue to add to our inventory of drilling prospects. We are particularly pleased to be the high bidder on four deepwater blocks --three in Alaminos Canyon and one in East Breaks," explains Fred Callon, chairman and CEO.