Callon Petroleum Company Posts 48 Percent Reserve Growth.NATCHEZ Natchez, city, United States Natchez, city (1990 pop. 19,460), seat of Adams co., SW Miss., on bluffs above the Mississippi River; settled 1716, inc. 1803. , Miss.--(BUSINESS WIRE)--Feb. 24, 1998--Callon Petroleum Company (Nasdaq NMS See NetWare Management System. :CLNP CLNP - ConnectionLess Network Protocol )(Nasdaq NMS:CLNPP) announced today that during 1997 its total proved oil and gas reserves increased 48 percent to 109.1 billion cubic feet of natural gas equivalent (Bcfe). As of December 31, 1997, the company's proved reserves proved reserves The quantity of minerals expected to be recoverable under current economic and operating conditions. The amount of proved reserves is important in valuing the stock of a company with significant holdings in natural resources. included 3.4 million barrels of oil (MMbo) and natural gas liquids, and 88.7 billion cubic feet (Bcf) of natural gas. Nineteen ninety-seven's reserve additions do not include any reserves from the company's successful fourth quarter drilling program. No reserves have been included for discoveries at Main Pass Block 32 and Eugene Island Eugene Island is a submerged mountain 70-85 miles off the Louisiana coast in the Gulf of Mexico. The nearby oil field Eugene Island 330 is best known for its unusual depletion profile. According to the article "Sustainable Oil?" by Chris Bennett WorldNetDaily. Block 335. The company's Parodi prospect at Main Pass Block 32 will be tested in the next several weeks and is estimated to begin production in June, 1998. At Eugene Island Block 335, three successful wells have encountered a total of six pay sands which, with fault separations, form eight potentially productive reservoirs. Additions from acquisitions and drilling, net of revisions and sales of reserves in place, equaled 51.7 Bcfe and represent a reserve placement rate equal to 325 percent of the company's 1997 production of 15.9 Bcfe. The 1997 reserve increase is a result of the company's acquisitions in the Mobile Block 864 area and additions from its successful drilling program at Main Pass Block 31. In the Shallow Miocene Trend, the company spent $48.7 million during 1997 to acquire several properties in the Mobile Block 864 area which had estimated net proved reserves of 51.6 Bcfe. The company's average net production during December 1997 from this area was 17.6MMcf/d. At Main Pass Block 31, in the company's Breton Sound Breton Sound is a sound and a part of the coastline of the U.S. state of Louisiana; it is near Lake Pontchartrain. Two ships in the United States Navy have been named the USS Breton after this area. Focus Area, Callon's SL 12002 #1 well came on production in December producing 7 MMcf and 300 barrels of condensate condensate, matter in the form of a gas of atoms, molecules, or elementary particles that have been so chilled that their motion is virtually halted and as a consequence they lose their separate identities and merge into a single entity. per day. Callon owns a 100 percent working (70 percent net revenue) interest in the well, which added 7.7 Bcfe of net proved reserves. 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 release contains projections and other forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 Co., Natchez John S. Weatherly, 800/451-1294 http://www.callon.com |
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