Callon Petroleum Company Issues Guidance For Second Quarter, Full Year 2009

NATCHEZ, Miss.--(Business Wire)--
Callon Petroleum Company (NYSE: CPE) is issuing guidance for the second quarter
and confirming production guidance for full year 2009. The guidance, found in
the table below, is expressed in ranges for the detailed components.

Second Quarter and Full Year 2009
Guidance Estimates
(In thousands, except per production unit amounts)

Guidance for Guidance for
2nd Quarter 2009 Full Year 2009
Estimated production volumes:
Natural gas (Bcf) 1.4 -- 1.5 5.0 - 7.5
Crude oil (Mbo) 195 - 215 830 - 880
MMcfe/d 28 - 30 27 - 35

Lease operating expenses:

Cash $ 4,000 -- $ 4,500 $17,000 -- $22,000
Non-cash -- --
Total $ 4,000 -- $ 4,500 $17,000 -- $22,000

General and administrative expenses:

Cash $ 2,000 -- $ 2,400 $ 7,300 -- $ 8,300
Non-cash 500 -- 600 2,000 -- 2,500
Total $ 2,500 -- $ 3,000 $ 9,300 -- $10,800

Interest expense:

Cash $ 4,000 -- $ 4,300 $16,000 -- $17,500
Non-recourse 1,500 -- 1,700 6,000 -- 6,500
Non-cash 700 -- 800 3,000 -- 3,500
Total $ 6,200 -- $ 6,800 $25,000 -- $27,500

Medusa Spar LLC, net of tax $ 100 -- $ 125 $ 400 -- $ 500

DD & A - Oil and gas properties $ 8,000 -- $ 9,000 $30,000 -- $41,000

Accretion expense $ 1,000 -- $ 1,200 $ 5,000 -- $ 6,000

Income tax rate 0% 0%

Cash income tax rate 0% 0%

The preceding guidance estimates contain assumptions that we believe are
reasonable. These estimates are based on information that is available as of the
date of this news release. We are not undertaking any obligation to update these
estimates as conditions change or as additional information becomes available.

Listed below are the outstanding hedges for crude oil for the remainder of
2009.

6/30/09 9/30/09 12/31/09
Crude Oil

Collars Volume (Mbo) 45 45 45
Ceiling $ 171.50 $ 171.50 $ 171.50
Floor $ 110.00 $ 110.00 $ 110.00

Collars Volume (Mbo) 45 45 45
Ceiling $ 180.00 $ 180.00 $ 180.00
Floor $ 110.00 $ 110.00 $ 110.00

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

This news release is posted on the company`s website at www.callon.com and will
be archived there for subsequent review. It can be accessed from the "News
Releases" link on the left side of the homepage.

This news release contains projections and other forward-looking statements
(including statements about fiscal fourth quarter and full-year financial and
operating performance) 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 include:

* general economic and industry conditions;
* volatility of oil and natural gas prices;
* uncertainty of estimates of oil and natural gas reserves;
* impact of competition;
* availability and cost of seismic, drilling and other equipment;
* operating hazards inherent in the exploration for and production of oil and
natural gas;
* difficulties encountered during the exploration for and production of oil and
natural gas;
* difficulties encountered in delivering oil and natural gas to commercial
markets;
* changes in customer demand and producers` supply;
* uncertainty of our ability to attract capital;
* compliance with, or the effect of changes in, the extensive governmental
regulations regarding the oil and natural gas business;
* actions of operators of our oil and gas properties;
* weather conditions; and
* the risk factors discussed in our filings with the Securities and Exchange
Commission, including but not limited to those in our Annual Report for the year
ended December 31, 2008 on Form 10-K.

The preceding estimates reflect our review of continuing operations only. These
estimates do not take into account any material transactions such as sales of
debt and equity securities, acquisitions or divestitures of assets, and
formations of joint ventures. We continually review these types of transactions
and may engage in one or more of these types of transactions without prior
notice.

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

Copyright Business Wire 2009