1. IPAA OIL & GAS INVESTMENT SYMPOSIUM APRIL 21, 2004

2. 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

3. Significant Changes 2004 ●INCREASED PRODUCTION AND CASH FLOW ●RESOLUTION OF DEBT MATURITIES ●CAPITAL BUDGET REFOCUSED ON RESERVE ADDITIVE PROJECTS

4. 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

5. Mobile Block 864 Area Callon Leasehold 863 864 907 908 952 953 955 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

6. Mobile Block 952 / 953 Callon Leasehold 863 864 907 908 952 953 955 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

7. Mobile Block 955 Callon Leasehold 863 864 907 908 952 953 955 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

8. 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

9. 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

10. 2004 Medusa Well Ramp-up

11. 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

12. 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

13. EXPLOITATION AND DEVELOPMENT

14. 25% 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 537 15% 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

15. Medusa North Discovery ● OWNERSHIP: 15% ● WATER DEPTH: 1,840’ ● OBJECTIVE DEPTH: 9,600’ ● POTENTIAL: 3 - 5 MMBOE ● POTENTIAL SIDE TRACK FOR TAKE POINT A A’ MEDUSA NORTH DISCOVERY MEDUSA DISCOVERY

16. Medusa North Discovery ● OWNERSHIP: 15% ● WATER DEPTH: 1,840’ ● OBJECTIVE DEPTH: 9,600’ ● POTENTIAL: 3 - 5 MMBOE ● POTENTIAL SIDE TRACK FOR TAKE POINT A A’ MEDUSA NORTH DISCOVERY MEDUSA DISCOVERY

17. 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

18. 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

19. 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

20. EXPLORATION

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

22. Active Shelf Prospects

23. Conventional Shelf Prospects CALLON PROSPECT ’04 – ‘05

24. Active Shelf Prospects CONVENTIONAL SHELF “BRIGHT SPOT” SUPPORTED

25. Fairfield 3-D Survey Louisiana HI 119 22% 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

26. Active Shelf Prospects CONVENTIONAL SHELF “BRIGHT SPOT” SUPPORTED DEEP SHELF AVO SUPPORTED

27. Active Shelf Prospects CONVENTIONAL SHELF DEEP SHELF CURRENTLY DRILLING

28. FINANCE

29. 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

30. Debt 3/31/04 ($MILLIONS) 2004 2005 M 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

31. 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

32. 2004 Hedging Position CRUDE OIL TOTAL POSITION1.2 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 POSITION5.5 BCF (AVG. 15 MMCF/D) 47% OF PROJECTED PRODUCTION COLLARED @ $5.00 MCF FLOOR AVERAGE CEILING OF $6.20

33. 2004 Guidance ESTIMATED 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

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

35. Reserve Additive Spending $MILLIONS LEASES AND SEISMIC DRILLING AND DEVELOPMENT 2003 2004 $1 MM $7 MM $5 MM $27 MM

36. ● 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?

37. 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.