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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: isopatch who wrote (72539)	9/7/2000 10:06:48 AM
From: The Ox	Read Replies (1) \| Respond to of 95453

Yesterday I bought my first "new" E+P in a long time, CPE. 90% of production is NG - bold section below caught my eye. This is a thinly traded stock and not for everyone. Putting it in my buy and hold port. Callon Petroleum Company Summarizes Conference Call NATCHEZ, Miss., Aug 11, 2000 (BUSINESS WIRE) -- Fred L. Callon, president and chief executive officer, and John S. Weatherly, senior vice president and chief financial officer, Callon Petroleum Company (NYSE: CPE chart, msgs) (NYSE: CPE.PrA chart, msgs), provided comments regarding second quarter activities and plans for the remainder of the year during a teleconference this morning with the investment community. A summary of their remarks follows. Second Quarter 2000 -- Callon reported net income of $3.2 million. After preferred stock dividends, this represented earnings of $0.21 per diluted share. -- Average daily production increased 25% from the first quarter of 2000 to 47.4 million cubic feet of natural gas equivalent (MMcfe). -- Oil and gas revenues for the second quarter totaled $14.3 million, an increase of 67% from $8.6 million in the second quarter of last year. This increase was the result of higher prices for both crude oil and natural gas. -- Natural gas represented 90% of Callon's production. Natural gas prices averaged $3.19 per thousand cubic feet (Mcf), a 48% increase from the same period of last year. Total natural gas sales increased by 66% from last year's level. -- The company's realized oil prices averaged $26.74 per barrel in the second quarter of 2000. This was more than double the $11.96 per barrel realized in the second quarter of last year. As a result, total crude oil sales increased by 70%. -- Callon's deepwater Entrada test well at Garden Banks Block 782 encountered 360 feet of pay in four intervals. -- The fourth test well at the company's deepwater Medusa discovery at Mississippi Canyon Blocks 538/582 encountered three reservoirs totaling over 250 feet (true vertical thickness) of net oil pay. -- At South Marsh Island Block 261 the No. 3 discovery well encountered 65 feet (true vertical thickness) of net pay and the No. 4 discovery well encountered 165 feet (true vertical thickness) of net pay in a total of four pay zones. Callon has drilled three successful wells on the block where it owns a 100% working interest. The wells are now online producing 14 million cubic feet of natural gas per day (MMcf/d). -- At East Cameron Block 275 the company's No. 1 discovery well was brought online and is producing 11 MMcfe/d. Callon owns a 100% working interest. Remainder of 2000 Between now and the end of the year Callon anticipates drilling several additional wells on the Outer Continental Shelf. The timing will depend upon partner approvals, permits and rig availability. In addition, increased activity in the Deepwater Region of the Gulf of Mexico is underway, with additional prospects to be drilled before year-end. Gulf of Mexico Deepwater Region Activity -- At Garden Banks Block 782 the company's No. 2 well currently is drilling at a depth of approximately 20,000 feet. This well is intended to further delineate the Entrada prospect. Callon owns a 20% working interest and Vastar Resources, Inc. is the operator. -- This month Callon plans to spud its Cumberland prospect located on Green Canyon Block 297. The company owns a 7.5% working interest and British-Borneo Petroleum, Inc. is the operator. -- In October a test well will be drilled on Callon's Moccasin (Garden Banks Block 253) prospect. The company owns a 12.5% working interest and Shell Deepwater Development Inc. is the operator. -- Callon plans to spud its Stonemaker prospect (Mississippi Canyon Block 493) during November or December. Located in 2,200 feet of water, the well will test the T-1 sands encountered at the company's Medusa discovery (Mississippi Canyon Blocks 538/582). Callon owns a 20% working interest and Murphy Oil Corporation is the operator. -- During the fourth quarter Callon plans to drill its Sidewinder prospect (Ewing Bank 995/Green Canyon Banks 24/25). The well will be drilled to a total depth of 16,000 feet. Callon owns a 15% working interest and Murphy Oil Corporation is the operator.