Callon Petroleum reports successful wells at Chandeleur Block 40, Main Pass Block 163.

NATCHEZ, Miss.--(BUSINESS WIRE)--Nov. 1, 1996--Callon Petroleum Company (Nasdaq NMS: CLNP/CLNPP) reported today that its first two wells drilled in federal waters offshore Louisiana as part of its offshore drilling program will be completed as natural gas producers and are expected to be on line within the next 30 days.

At Main Pass Block 163, the Company's No. A-1 well encountered 54 feet of net pay in a new reservoir discovery at a true vertical subsea depth of approximately 3,300 feet. Drilled from a surface location adjacent to the company's production facility at Main Pass Block 163, the well reached a lateral distance of 6,927 feet and encountered the reservoir at an approximate 78-degree angle. Callon owns a 100 percent working interest in both the No. A-1 well and the supporting production facilities.

At Chandeleur Block 40, the Company's No. A-3 well encountered 44 feet of net pay at a true vertical subsea depth of approximately 3,855 feet. Drilled from a surface location at the company's production facility at Chandeleur Block 40, the well reached a lateral distance of 2,690 feet. Callon owns a 52 percent working interest in this block.

Both wells are expected to be placed on production by the end of November. The company is currently drilling at Main Pass 161, in which it owns a 100 percent working interest.

As a result of these two wells, coupled with the replacement of compression equipment at the Chandeleur Block 40 and Main Pass Block 163 production facilities, Callon anticipates a substantial increase in its natural gas production rates by year-end 1996.

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.

CONTACT: Callon Petroleum Company, Natchez

John Weatherly, 800/451-1294