Callon Petroleum Company reports earnings for third quarter, first nine months of 1996.

NATCHEZ, Miss.--(BUSINESS WIRE)--Nov. 5, 1996--Callon Petroleum Company (Nasdaq NMS: CLNP/CLNPP) reported results of its operations today for both the three and nine-month periods ended September 30, 1996.

Operating results for the three-month period ended September 30, 1996 include net income of $295,000, or $0.05 per common share, compared to net income of $181,000, or $0.03 per common share, during the same period in 1995.

For the nine months ended September 30, 1996, the company reported net income of $1,139,000, or $0.20 per common share, on revenues of $19.1 million compared to net income of $370,000, or $0.06 per common share, on revenues of $17.9 million during the first nine months of 1995.

For the three-month period ended September 30, 1996, total oil and gas revenues increased slightly from $6.2 million in 1995 to $6.3 million this year as the result of increased gas production and prices for both oil and gas. Oil prices received in the third quarter of 1996 averaged $17.90 per barrel compared to $16.54 per barrel during the same period in 1995. The average sales price per thousand cubic feet of gas during the third quarter of 1996 was $1.96 compared to $1.89 during the same period a year earlier.

For the nine months ended September 30, 1996, oil and gas sales increased $1.2 million, or seven percent, to $18.6 million compared to $17.4 million during the same period in 1995. The average realized price per barrel of oil received during the first nine months of 1996 was $18.05 compared to $16.68 during the same period last year. The realized price per thousand cubic feet of gas during the first nine months of 1996 averaged $2.18, an increase from the $1.88 average price during the same period of 1995.

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. -0-

                       Callon Petroleum Company
                     Summary Revenues and Earnings
                (In thousands, except per share amounts)

                              Three Months Ended  Nine Months Ended
                                 September 30,      September 30,
                                 1996     1995      1996     1995
Revenues                       $ 6,588  $ 6,228   $19,115  $17,901
Net income available to
 common shares                 $   295  $   181   $ 1,139  $   370
Net income per common share    $  0.05  $  0.03   $  0.20  $  0.06
Weighted average common shares   5,755    5,754     5,755    5,754

CONTACT: Callon Petroleum Company, Natchez

John Weatherly, CFO, 800/451-1294