Callon Acquires Conoco's Interest In the 'Garfield' Natural Gas Discovery Well.

NATCHEZ, Miss.--(BUSINESS WIRE)--July 30, 1998--Callon Petroleum Company (NYSE:CPE/CPE.PrA) announced today it has acquired for $7.25 million Conoco, Inc.'s (NYSE:DD) 50 percent working interest in the Garfield prospect, consisting of two Louisiana State Leases on Main Pass Blocks 36 and 49, and the State Lease 14964 No. 1 well, a natural gas discovery.

The discovery well was originally drilled to a depth of 18,066 feet before encountering mechanical difficulties and was subsequently sidetracked to a depth of 16,707 feet. The sidetracked hole encountered a total of 40 feet of net gas pay in three zones between 13,300 feet and 16,500 feet.

Callon currently is drilling its Romeo y Julieta prospect on Main Pass Block 32, which is located approximately three miles northwest of the Garfield discovery.

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.

This news releasecontains projections and other forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These projections and statements reflect the company's current views with respect to future events and financial performance. No assurances can be given, however, that these events will occur or that these projections will be achieved and actual results could differ materially from those projected as a result of certain factors.

    CONTACT:  Callon Petroleum Company, Natchez
               John S. Weatherly, 800/451-1294