Callon Says Bob North to be Abandoned

Callon Petroleum reports that the exploratory well to test the Bob North Prospect on Mississippi Canyon Block 860 will be plugged an abandoned. The well encountered non-commercial hydrocarbon shows. The company had a 3.3% working interest in the well. Drilling costs net to Callon are estimated to be $4.5 million.

Callon also issued an update on its other deepwater activities in the Gulf of Mexico.

Mississippi Canyon Blocks 538 / 582 (Medusa Field) –– Workovers on four of the field wells have been completed, resulting in an increase in field production of 2,400 barrels of oil (Bbls) per day. Medusa is now producing 14,300 Bbls and 13.7 million cubic feet of natural gas (MMcf) per day. A development well is scheduled to spud in early 2008 which will target an undrained fault block. Anticipated production from this development well is estimated to be approximately 8,000 Bbls per day. Callon owns a 15% working interest in the Medusa Field.

Garden Banks Block 341 (Habanero Field) –– As a result of the recent sidetrack of the #1 well, production from that well is now 4,100 Bbls and 5.6 MMcf per day. Total field production is 7,500 Bbls and 10.6 MMcf per day. The company owns an 11.25% working interest in the #2 well and a 25% working interest in the #1 well.

Callon Petroleum Company is engaged in the acquisition, exploration, development and operation of oil and gas properties primarily offshore in the Gulf of Mexico. Over 80% of Callon's oil and gas reserves are located in the deepwater Gulf of Mexico with approximately 55% consisting of crude oil.