Callon Petroleum Company Commences Consent Solicitation with Holders of Its 9.75%...

Callon Petroleum Company Commences Consent Solicitation with Holders of Its 9.75% Senior Notes Due 2010

NATCHEZ, Miss.--(Business Wire)--
Callon Petroleum Company (NYSE:CPE) announced today it has
commenced a consent solicitation requesting holders of 9.75% Senior
Notes due 2010 to consent to an amendment and supplement to the
indenture for the notes to permit the company to contribute its
Entrada prospect to an Unrestricted Subsidiary, as defined in the note
indenture, for the purpose of entering into a credit facility to
develop the prospect.

Callon has entered into an agreement with the holders of
$148,158,000 principal amount of the Notes to give their consent to
such amendment and supplement. Approval of the amendment and
supplement require the approval of holders of $150 million of the
notes. The consent solicitation will remain open until 11:00 a.m., New
York City time, on April 4, 2008, unless accelerated or further
extended under conditions set forth in the consent solicitation.
Callon will pay a consent fee of $5.00 for each $1,000 of principal
amount consenting subject to and as provided in the consent
solicitation documents.

The company has retained Global Bondholder Services Corporation to
serve as its Tabulation Agent for the consent solicitation. Requests
for documents should be directed to Global Bondholder Services at
(866) 470-3800 or (212) 430-3774.

This announcement is not an offer to purchase or sell, a
solicitation of an offer to purchase or sell or a solicitation of
consents with respect to any securities. The solicitations are being
made solely pursuant to the company's Consent Solicitation Statement
dated March 31, 2008 and the related Letter of Consent.

About Callon Petroleum

Callon Petroleum Company is engaged in the exploration,
development, acquisition and operation of oil and gas properties
primarily in the Gulf Coast region. Callon's properties and operations
are geographically concentrated in Louisiana, and the offshore waters
of the Gulf of Mexico.

Forward Looking Statements

It should be noted that this news release contains 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.
Some of the factors which could affect our future results and could
cause results to differ materially from those expressed in our
forward-looking statements are discussed in our filings with the
Securities and Exchange Commission, including our Annual Reports on
Form 10-K, available on our website or the SEC's website at
www.sec.gov.

Callon Petroleum Company
Rodger W. Smith, 1-800-451-1294

Copyright Business Wire 2008