IPAA OIL & GAS INVESTMENT SYMPOSIUM 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 HABANERO 34,000 BOE/D SHELL OPERATED MEDUSA 31,400 BOE/D MURPHY OPERATED MOBILE 864 AREA 35 MMCF/D CALLON OPERATED

Mobile Block 864 Area Callon Leasehold Mobile Block 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 Mobile Block 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 Mobile Block 864 Unit ● 1/04 - DRILLED MOB 955 #3 DEVELOPMENT WELL ● 11 MMCF/D PRODUCTION INCREASE WITHOUT COMPRESSION ● ADDITIONAL COMPRESSION SCHEDULED 2 ND Q 2004

Medusa Mississippi Canyon Blocks 538/582 ● OPERATOR: MURPHY ● OWNERSHIP: 15% ● WATER DEPTH: 2,235’ ● 1 ST PRODUCTION 11/03 ● FIELD RESERVES (MMBOE) ● 80 PROVED ● 45 POTENTIAL ● 125 TOTAL

Medusa Development ● 1 ST WELL COMPLETED AND BROUGHT ONLINE 11/24/03 PRODUCING 7,700 BOE/D ● 2 ND WELL COMPLETED AND BROUGHT ONLINE 1/11/04 PRODUCING 14,000 BOE/D ● 3 RD 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

Garden Banks Block 341 Habanero ● OPERATOR: SHELL ● OWNERSHIP: 11.25% ● WATER DEPTH: 2,000’ ● 1 ST PRODUCTION: 11/03 ● FIELD RESERVES (MMBOE) ● PROVED 70 ● POTENTIAL 40 ● TOTAL 110 HABANERO IS PRODUCED THROUGH SHELL’S AUGER PLATFORM

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

EXPLOITATION AND DEVELOPMENT

25% W.I. 15% W.I. MC 493 MC 494 MC 538 MC 539 MC 581 MC 582 MC % W.I. MC 626 MC % W.I. MC % W.I. Medusa Discovery Medusa North Discovery Medusa Development Medusa West Prospect Souvenir Prospect Medusa Northwest Prospect Five-Step Lead Prospect 15% W.I. MC 492MC 491

Medusa North Discovery ● OWNERSHIP: 15% ● WATER DEPTH: 1,840’ ● OBJECTIVE DEPTH: 9,600’ ● POTENTIAL: MMBOE ● POTENTIAL SIDE TRACK FOR TAKE POINT A A’ MEDUSA NORTH DISCOVERY MEDUSA DISCOVERY

Medusa North Discovery ● OWNERSHIP: 15% ● WATER DEPTH: 1,840’ ● OBJECTIVE DEPTH: 9,600’ ● POTENTIAL: MMBOE ● POTENTIAL SIDE TRACK FOR TAKE POINT A A’ MEDUSA NORTH DISCOVERY MEDUSA 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 MEDUSA NORTHWEST PROSPECT MEDUSA DISCOVERY MEDUSA NORTH 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 MEDUSA NORTHWEST PROSPECT MEDUSA DISCOVERY MEDUSA NORTH DISCOVERY

Entrada Area Potential 10% W.I. 20% W.I. Conoco Magnolia Discovery 20% W.I. #1 #2 #2 ST1 20% W.I. #3 ST1 #3 ENTRADA DISCOVERY ENTRADA #2 CIRRUS PROSPECT CLEAN SWEEP PROSPECT

EXPLORATION

Area of Operations Productive - Proved Reserves Undeveloped Leases OUTER CONTINENTAL SHELF DEEPWATER SHALLOW MIOCENE SHALLOW MIOCENE

Active Shelf Prospects

Conventional Shelf Prospects CALLON PROSPECT ’04 – ‘05

Active Shelf Prospects CONVENTIONAL SHELF “BRIGHT SPOT” SUPPORTED

Fairfield 3-D Survey Louisiana HI % W.I. WC % 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 CONVENTIONAL SHELF “BRIGHT SPOT” SUPPORTED DEEP SHELF AVO SUPPORTED

Active Shelf Prospects CONVENTIONAL SHELF DEEP SHELF CURRENTLY DRILLING

FINANCE

Debt 9/30/03 ($MILLIONS) MATURITY DEBT:* SR. BANK CREDIT $ 72 $ -- 12% SR. UNSECURED NOTE % SR. SUB NOTES % SR. SUB NOTES % SR. SUB NOTES % SR. UNSECURED NOTES TOTAL DEBT $135 $128 TOTAL $263 *INCLUDES CURRENT PORTION

Debt 3/31/04 ($MILLIONS) M A T U R I T Y 2010 DEBT:* SR. BANK CREDIT $ 17 $ -- $ -- 12% SR. UNSECURED NOTES % SR. SUB NOTES % SR. SUB NOTES % SR. SUB NOTES % SR. UNSECURED NOTES $ 200 TOTAL DEBT $ 17 $ 33 $ 200 TOTAL $250 *INCLUDES CURRENT PORTION

Actual / Estimated Production 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 Position CRUDE OIL TOTAL POSITION1.2 MMBO (AVG. 3,250 BO/D) 50% OF PROJECTED PRODUCTION 1,725 BO/D $29.50 x $ ,525 BO/D $30.75 NATURAL GAS TOTAL POSITION5.5 BCF (AVG. 15 MMCF/D) 47% OF PROJECTED PRODUCTION $5.00 MCF FLOOR AVERAGE CEILING OF $6.20

2004 Guidance ESTIMATED PRODUCTION OIL (MMBO) GAS (BCF) CASH EXPENSES ($MILLIONS) OPERATING AND G & A $ 28.0 $ 31.0 INTEREST $ 20.5 $ 22.5 MARGIN ANALYSIS PER BBL PER MCF REALIZED PRICES $ $ 5.22 CASH EXPENSES CASH MARGIN $ $ 3.17

Capital Budget YEAR 2004 $18 MM SHELF DEVELOPMENT AND EXPLORATION $29 MM DEEPWATER DEVELOPMENT AND EXPLORATION $18 MM LEASES, SEISMIC AND OTHER

Reserve Additive Spending $MILLIONS LEASES AND SEISMIC DRILLING AND DEVELOPMENT $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 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.