Callon Petroleum Company is engaged in the exploration, development, acquisition and production of oil and gas properties. The Company's properties are geographically concentrated primarily offshore in the Gulf of Mexico and onshore in Louisiana and Alabama. Over the past five years, the Company has also placed emphasis on the acquisition of acreage with exploration and development drilling opportunities in the Gulf of Mexico Shelf area. As of December 31, 2000, the Company's estimated net proved reserves totaled 33.4 million barrels of oil (MBbl) and 133.4 billion cubic feet of natural gas (Bcf). Gas constitutes approximately 40% of the Company's total estimated proved reserves, and approximately 20% of the Company's reserves are proved producing reserves.