Callon Petroleum Company, with the recent execution of a Production Handling Agreement with the Magnolia Field partners and finalization of the development plan, it is now ready to identify a partner to participate in the Entrada Field development.

Callon owns a 100% working interest and is the operator of the Entrada Field, located in the deepwater region of the Gulf of Mexico, which includes five federal offshore blocks at Garden Banks 738, 782, 785, 826 and 827.

Two discovery wells and seven delineation wells have been drilled to date, and the company’s independent petroleum engineers have estimated that proved reserves, net of royalties, attributable to the Entrada Field are approximately 17.5 million barrels of crude oil (MMbo) and 87.1 billion cubic feet of natural gas (Bcf). In addition, associated probable reserves, net of royalties, are estimated to be 17.6 MMbo and 42.2 Bcf, representing a total proved plus probable net reserve base of approximately 56.6 million barrels of oil equivalent.

Callon has retained Merrill Lynch Petrie Divestiture Advisors to assist the company in identifying a partner to participate in the continued development of the Entrada Field.

“We are excited about beginning the search to find the right partner to participate with us in the Entrada field development and feel that now is the time to begin this process with our target of initial production by the first quarter 2009,” explains Fred Callon, Chairman and CEO.