IPAA OIL & GASINVESTMENTSYMPOSIUM

APRIL 21, 2004

Corporate Profile

● PROVED RESERVES 217 BCFE

● CURRENT PRODUCTION 70 MMCFE/D (50% OIL)

● 13.9 MILLION SHARES OUTSTANDING

● $160 MILLION MARKET CAP

● $410 MILLION TOTAL ENTERPRISE VALUE

Significant Changes 2004

● INCREASED PRODUCTION AND

CASH FLOW

● RESOLUTION OF DEBT MATURITIES

● CAPITAL BUDGET REFOCUSED ON

RESERVE ADDITIVE PROJECTS

LOUISIANA

Producing Properties

HABANERO34,000 BOE/D

SHELL OPERATED

MEDUSA31,400 BOE/D

MURPHY OPERATED

MOBILE 864 AREA 35 MMCF/D

CALLON OPERATED

Mobile Block 864 Area

Callon Leasehold

863863 864864

907907908908

952952 953953 955955

MobileBlock 864 Unit

● AVERAGED 25 MMCF/D NET DURING 2003 ● 72% OF 2003 GAS PRODUCTION

● CALLON OPERATED

● 83% AVG. W.I. IN 8 WELLS

Mobile Block 952 / 953

Callon Leasehold

863863 864864

907907908908

952952

953953 955955

MobileBlock 864 Unit

● 9/01 - DRILLED MOB 953 #2 DEVELOPMENT WELL ● 4/02 - ADDITIONAL COMPRESSION ADDED MOB 952 ONLINE

● 20 MMCF/D PRODUCTION INCREASE AREA-WIDE

Mobile Block 955

Callon Leasehold

863863 864864

907907908908

952952 953953 955955

MobileBlock 864 Unit

● 1/04 - DRILLED MOB 955 #3 DEVELOPMENT WELL ● 11 MMCF/D PRODUCTION INCREASE WITHOUT COMPRESSION

● ADDITIONAL COMPRESSION SCHEDULED 2ND Q 2004

Medusa Mississippi Canyon Blocks

538/582

● OPERATOR: MURPHY

● OWNERSHIP: 15%

● WATER DEPTH: 2,235’

● 1ST PRODUCTION 11/03

● FIELD RESERVES (MMBOE)

● 80 PROVED● 45 POTENTIAL● 125 TOTAL

Medusa Development ● 1ST WELL COMPLETED AND BROUGHT ONLINE 11/24/03 PRODUCING 7,700 BOE/D ● 2ND WELL COMPLETED AND BROUGHT ONLINE 1/11/04 PRODUCING 14,000 BOE/D

● 3RD WELL COMPLETED AND BROUGHT ONLINE 3/18/04 PRODUCING 9,700 BOE/D

● ADDITIONAL 3 WELLS SCHEDULED FOR COMPLETION BY MID-YEAR

2004 Medusa Well Ramp-up

0

5

10

15

20

25

30

35

40

45

50

Nov Dec Jan

Feb Mar Apr

May Ju

n Jul

Aug Sep Oct

Nov Dec

MB

OE

/D

A-1 A-2 A-3 A-6 A-4 A-5

Garden Banks Block 341

Habanero

● OPERATOR: SHELL

● OWNERSHIP: 11.25%

● WATER DEPTH: 2,000’

● 1ST PRODUCTION: 11/03

● FIELD RESERVES (MMBOE)

● PROVED 70● POTENTIAL 40● TOTAL 110

HABANERO IS PRODUCED THROUGH SHELL’S AUGER PLATFORM

Habanero Development ● 1ST WELL COMPLETED AND BROUGHT ONLINE 11/29/03 PRODUCING 27,000 BOE/D ● 2ND WELL COMPLETED AND BROUGHT ONLINE 1/11/04 PRODUCING 7,000 BOE/D

EXPLOITATIONAND

DEVELOPMENT

25% W.I.

15% W.I.15% W.I.

15% W.I.15% W.I.

15% W.I. 15% W.I.MC 493 MC 494

MC 538 MC 539

MC 581 MC 582

MC 624

20% W.I.MC 626 MC 627

20% W.I.

MC 53715% W.I.

MedusaDiscovery

Medusa NorthDiscovery

Medusa Development

Medusa WestProspect

Souvenir Prospect

Medusa Northwest Prospect

Five-Step LeadProspect

15% W.I.15% W.I.MC 492MC 491

Medusa North Discovery● OWNERSHIP: 15%

● WATER DEPTH: 1,840’

● OBJECTIVE DEPTH: 9,600’

● POTENTIAL: 3 - 5 MMBOE

● POTENTIAL SIDE TRACK

FOR TAKE POINTA

A’

MEDUSANORTH

DISCOVERYMEDUSA

DISCOVERY

Medusa North Discovery● OWNERSHIP: 15%

● WATER DEPTH: 1,840’

● OBJECTIVE DEPTH: 9,600’

● POTENTIAL: 3 - 5 MMBOE

● POTENTIAL SIDE TRACK

FOR TAKE POINTA

A’

MEDUSANORTH

DISCOVERYMEDUSA

DISCOVERY

MEDUSA NORTH WELL

Medusa Northwest Prospect● OWNERSHIP: 15% ● WATER DEPTH: 1,700’

● 20 MMCF/D PRODUCTION INCREASE AREA-WIDE

● OBJECTIVE DEPTH: 10,000’

● POTENTIAL: 4 – 6 MMBOE

● SUB-SEA TIE-IN SHARED FLOWLINES WITH MEDUSA NORTH

MEDUSANORTHWESTPROSPECT

MEDUSADISCOVERY

MEDUSANORTH

DISCOVERY

MEDUSA NORTH WELL

Medusa Northwest Prospect● OWNERSHIP: 15% ● WATER DEPTH: 1,700’

● 20 MMCF/D PRODUCTION INCREASE AREA-WIDE

● OBJECTIVE DEPTH: 10,000’

● POTENTIAL: 4 – 6 MMBOE

● SUB-SEA TIE-IN SHARED FLOWLINES WITH MEDUSA NORTH

MEDUSANORTHWESTPROSPECT

MEDUSADISCOVERY

MEDUSANORTH

DISCOVERY

Entrada Area Potential

10% W.I.

20% W.I. 20% W.I.

20% W.I.

ConocoMagnoliaDiscovery

20% W.I.

#1

#2

#2 ST1

20% W.I.

#3 ST1

#3

ENTRADADISCOVERYENTRADA #2

CIRRUSPROSPECT

CLEAN SWEEPPROSPECT

EXPLORATION

Area of Operations

Productive - Proved Reserves Undeveloped Leases

OUTER CONTINENTAL SHELFOUTER CONTINENTAL SHELF

DEEPWATER DEEPWATER

SHALLOW MIOCENE

SHALLOW MIOCENE

Active Shelf Prospects

1

10

100

1,000

5 7 9 11 13 15 17 19 21 23

DEPTH - THOUSANDS OF FEET

BC

FE

Conventional Shelf Prospects

CALLON PROSPECT ’04 – ‘05

Active Shelf Prospects

1

10

100

1,000

5 7 9 11 13 15 17 19 21 23

DEPTH - THOUSANDS OF FEET

BC

FE

CONVENTIONAL SHELF “BRIGHT SPOT” SUPPORTED

Fairfield 3-D Survey

Louisiana

HI 11922% W.I.

WC 295 20% W.I.

CALLON PROSPECT ’04 – ‘05

CURRENT AREA OF FOCUS OVER 6,000 WELLS 50 TCFE PRODUCED 6,000 SQ. MI. SEISMIC DATA APPLYING AVO TECHNOLOGY

Active Shelf Prospects

1

10

100

1,000

5 7 9 11 13 15 17 19 21 23

DEPTH - THOUSANDS OF FEET

BC

FE

CONVENTIONAL SHELF “BRIGHT SPOT” SUPPORTED

DEEP SHELF AVO SUPPORTED

Active Shelf Prospects

1

10

100

1,000

5 7 9 11 13 15 17 19 21 23

DEPTH - THOUSANDS OF FEET

BC

FE

CONVENTIONAL SHELF DEEP SHELF CURRENTLY DRILLING

FINANCE

Debt 9/30/03($MILLIONS)

2004 2005

MATURITY

DEBT:*

SR. BANK CREDIT $ 72 $ --

12% SR. UNSECURED NOTE -- 95

10.125% SR. SUB NOTES 23 --

10.25% SR. SUB NOTES 40 --

11.0% SR. SUB NOTES -- 33

9.75% SR. UNSECURED NOTES -- --

TOTAL DEBT $135 $128

TOTAL $263

*INCLUDES CURRENT PORTION

Debt 3/31/04($MILLIONS)

2004

2005M A T U R I T Y

2010

DEBT:*

SR. BANK CREDIT $ 17 $ -- $ --

12% SR. UNSECURED NOTES -- -- --

10.125% SR. SUB NOTES -- -- --

10.25% SR. SUB NOTES -- -- --

11.0% SR. SUB NOTES -- 33 --

9.75% SR. UNSECURED NOTES -- -- $ 200

TOTAL DEBT $ 17 $ 33 $ 200

TOTAL $250

*INCLUDES CURRENT PORTION

Actual / Estimated Production

0

20

40

60

80

MM

CF

E/D

OTHER SHELF MEDUSA HABANERO

8/03 9/03 10/03 11/03 12/03 1/04 2/04 3/04 4/04 5/04 6/04 7/04

2004 Hedging PositionCRUDE OIL

TOTAL POSITION 1.2 MMBO (AVG. 3,250 BO/D)

50% OF PROJECTED PRODUCTION

1,725 BO/D COLLARED @ $29.50 x $32.50

1,525 BO/D FIXED @ $30.75

NATURAL GAS

TOTAL POSITION 5.5 BCF (AVG. 15 MMCF/D)

47% OF PROJECTED PRODUCTION

COLLARED @ $5.00 MCF FLOOR

AVERAGE CEILING OF $6.20

2004 GuidanceESTIMATED PRODUCTION

OIL (MMBO) 2.2 2.5

GAS (BCF) 11.0 12.5

CASH EXPENSES ($MILLIONS)

OPERATING AND G & A $ 28.0 $ 31.0

INTEREST $ 20.5 $ 22.5

MARGIN ANALYSIS PER BBL PER MCF

REALIZED PRICES $ 28.16 $ 5.22

CASH EXPENSES 12.28 2.05

CASH MARGIN $ 15.88 $ 3.17

Capital Budget

YEAR 2004

$18 MMSHELF DEVELOPMENT

AND EXPLORATION

$29 MMDEEPWATER DEVELOPMENT

AND EXPLORATION

$18 MMLEASES, SEISMIC

AND OTHER

Reserve Additive Spending

0

10

20

30$MILLIONS

LEASES AND SEISMIC DRILLING AND DEVELOPMENT

2003 2004

$1 MM

$7 MM$5 MM

$27 MM

● STRONG PRICE REALIZATION CLIMATE

● SIGNIFICANT GROWTH IN PRODUCTION AND CASH FLOW

● IMPROVING BALANCE SHEET

● SIGNIFICANT POTENTIAL FROM SHELF AND DEEPWATER PROSPECT INVENTORY

Summary – Why Callon?

Forward-Looking Statements and Reserve Estimates

This presentation 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 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.

The Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this presentation, such as reserve estimates, that the SEC’s rules strictly prohibit us from including in filings with the SEC.