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8-K - FORM 8-K - Callon Petroleum Co | h69515e8vk.htm |
EX-99.2 - EX-99.2 - Callon Petroleum Co | h69515exv99w2.htm |
Exhibit 99.1
For further information contact
Rodger W. Smith 1-800-451-1294
Rodger W. Smith 1-800-451-1294
FOR IMMEDIATE RELEASE
Callon Petroleum Company Announces
Increase in 2009 Year-end Reserves
Increase in 2009 Year-end Reserves
Natchez, MS (February 1, 2010) Callon Petroleum Company (NYSE: CPE) announced today
that it ended 2009 with estimated net proved reserves of 58.0 billion cubic feet of natural gas
equivalent (Bcfe), compared to 2008 year-end proved reserves of 54.8 Bcfe, a 6% increase. The
2009 year-end reserves were 67% crude oil. Callon added 15.0 Bcfe of net proven reserves
replacing 127% of the reserves produced in 2009.
We were very pleased to be able to replace our production and to grow our proved reserves
during 2009 which was a year of transition for our company, Fred Callon, Chairman and CEO
points out. More importantly, we added significantly to our resource base, which will help
provide growth over the next several years.
At December 31, 2009, the companys independent petroleum engineers estimated the present
value of the companys estimated future net revenues from proved reserves, excluding income taxes
(which is a non-GAAP financial measure), using Securities and Exchange Commission (SEC) pricing
guidelines for year-end 2009 discounted at 10%, to be $137.4 million. The year-end pricing used in
calculating such present value averaged $4.75 per thousand cubic feet of natural gas and $57.40 per
barrel of oil. Callon compiled year-end reserve data utilizing new guidelines from the SEC. The
changes, intended to provide greater clarity for investors, also give companies enhanced
flexibility in reporting. The new rules had a minimal effect on Callons reported volumes.
Callon Petroleum Company is engaged in the acquisition, development, exploration and
operation of oil and gas properties in Louisiana, Texas, and the offshore waters of the Gulf of
Mexico.
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 Companys current
views with respect to future events and financial performance as of this date. 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. For a summary
of events that may affect the accuracy of these projections and forward-looking statements, see
Risk Factors in our Form 10-K filed with the Securities and Exchange Commission.
Cautionary Note to Investors As of January 1, 2010, the SEC changed its rules to permit oil
and gas companies, in their filings with the SEC, to disclose not only proved reserves, but also
probable reserves and possible reserves. Proved oil and gas reserves are those quantities of oil
and gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable
certainty to be economically produciblefrom a given date forward, from known reservoirs, and
under existing economic conditions, operating methods, and government regulationsprior to the
time at which contracts providing the right to operate expire. Probable reserves include those
additional reserves that a company believes are as likely as not to be recovered and possible
reserves include those additional reserves that are less certain to be recovered than probable
reserves.
We use may use certain terms in our news releases, such as reserve potential, that the SECs
guidelines strictly prohibit us from including in filings with the SEC. In addition, we do not
represent that the probable or possible reserves described herein meet the recoverability
thresholds established by the SEC in its new definitions. Investors are urged to consider closely
the disclosure in our Form 10-K, available from us by contacting Investor Relations, Callon
Petroleum Company, 200 N. Canal Street, Natchez, MS 39120.
You can also obtain our Form 10-K from the SEC by calling 1-800-SEC-0330 or by downloading it
from the SECs web site http://www.sec.gov/.