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Callon Commences Deepwater Drilling at Entrada Field in Gulf of Mexico

September 24, 2008

Callon Petroleum has commenced drilling on the first of two development wells at its deepwater Entrada Field in Gulf of Mexico. The company anticipates first production in early 2009.

The semi-submersible rig Ocean Victory is on location and has commenced drilling the Entrada-3 well after operations were suspended and all personnel were evacuated during hurricanes Gustav and Ike. The Ocean Victory is scheduled to be on site at Entrada for approximately 180 days to drill and complete the Entrada-3 and the Entrada-4 wells.

Callon is the operator of the Entrada Field. The Ocean Victory drilled the original two discovery wells at Entrada and has reportedly performed well on other projects in which Callon has an interest.

During July 2008, approximately 13 miles of natural gas and crude oil flow lines were successfully laid from the Entrada Field to within approximately 1,500 feet of the ConocoPhillips-operated Magnolia Field production platform located on the adjacent block, through which Entrada’s oil and gas will be produced.

The pipe lay operation was completed in 12 days, on schedule, by Technip’s pipe lay vessel the Deep Blue. The steel risers which will connect the oil and gas flow lines resting on the sea floor to the Magnolia Field production facility are scheduled to be installed in January 2009.




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