IPAA OIL & GAS INVESTMENT SYMPOSIUM

1. IPAA OIL & GASINVESTMENTSYMPOSIUM 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 MOBILE 864 AREA 35 MMCF/D CALLON OPERATED HABANERO 34,000 BOE/D SHELL OPERATED MEDUSA 31,400 BOE/D MURPHY OPERATED Producing Properties

5. Mobile Block 864 Unit Mobile Block 864 Area • AVERAGED 25 MMCF/D NET DURING 2003 • 72% OF 2003 GAS PRODUCTION • CALLON OPERATED • 83% AVG. W.I. IN 8 WELLS 863 864 908 907 952 953 955 Callon Leasehold

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

7. Mobile Block 955 Mobile Block 864 Unit • 1/04 - DRILLED MOB 955 #3 DEVELOPMENT WELL • 11 MMCF/D PRODUCTION INCREASE WITHOUT COMPRESSION • ADDITIONAL COMPRESSION SCHEDULED 2ND Q 2004 863 864 908 907 952 953 955 Callon Leasehold

8. 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

9. 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

10. 2004 Medusa Well Ramp-up

11. Habanero Garden Banks Block 341 • 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

12. 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

13. EXPLOITATIONAND DEVELOPMENT

14. Medusa Development Medusa North Discovery Medusa Northwest Prospect Medusa West Prospect Souvenir Prospect Medusa Discovery Five-Step Lead Prospect MC 493 MC 491 MC 492 MC 494 15% W.I. 15% W.I. 15% W.I. 15% W.I. MC 539 MC 538 MC 537 15% W.I. 15% W.I. 15% W.I. MC 581 MC 582 15% W.I. 15% W.I. MC 626 MC 627 20% W.I. 20% W.I. MC 624 25% W.I.

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

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

17. Medusa Northwest Prospect MEDUSA NORTH WELL MEDUSA NORTHWEST PROSPECT MEDUSA NORTH DISCOVERY MEDUSA DISCOVERY • 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

18. Medusa Northwest Prospect MEDUSA NORTH WELL MEDUSA NORTHWEST PROSPECT MEDUSA NORTH DISCOVERY MEDUSA DISCOVERY • 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

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

20. EXPLORATION

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

22. Active Shelf Prospects

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

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

25. Fairfield 3-D Survey WC 295 20% W.I. Louisiana HI 119 22% 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. CONVENTIONAL SHELF “BRIGHT SPOT” SUPPORTED DEEP SHELF AVO SUPPORTED Active Shelf Prospects

27. CURRENTLY DRILLING DEEP SHELF CONVENTIONAL SHELF Active Shelf Prospects

28. FINANCE

29. Debt 9/30/03 MATURITY 2004 2005 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 $263 *INCLUDES CURRENT PORTION ($MILLIONS)

30. Debt 3/31/04 M A T U R I T Y 2005 2010 2004 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 $250 *INCLUDES CURRENT PORTION ($MILLIONS)

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 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

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 BBLPER MCF REALIZED PRICES $ 28.16 $ 5.22 CASH EXPENSES 12.28 2.05 CASH MARGIN $ 15.88$ 3.17

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

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

36. Summary – Why Callon? • STRONG PRICE REALIZATION CLIMATE • SIGNIFICANT GROWTH IN PRODUCTION AND CASH FLOW • IMPROVING BALANCE SHEET • SIGNIFICANT POTENTIAL FROM SHELF AND DEEPWATER PROSPECT INVENTORY

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.