-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UC3Pe7UJtB40sJ+bzayTny5VFwV69nqNn5vezWmRBFhDKwbX1Qtb4A5LIvNfs6Oa ZNTQTLXGf+lleRDqznM1Sw== 0000950129-02-006102.txt : 20021213 0000950129-02-006102.hdr.sgml : 20021213 20021213150341 ACCESSION NUMBER: 0000950129-02-006102 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20021212 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: FILED AS OF DATE: 20021213 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CALLON PETROLEUM CO CENTRAL INDEX KEY: 0000928022 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 640844345 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-14039 FILM NUMBER: 02856996 BUSINESS ADDRESS: STREET 1: 200 N CANAL ST CITY: NATCHEZ STATE: MS ZIP: 39120 BUSINESS PHONE: 6014421601 MAIL ADDRESS: STREET 1: 200 N CANAL ST CITY: NATCHEZ STATE: MS ZIP: 39120 FORMER COMPANY: FORMER CONFORMED NAME: CALLON PETROLEUM HOLDING CO DATE OF NAME CHANGE: 19940805 8-K 1 h02017e8vk.txt CALLON PETROLEUM COMPANY =============================================================================== SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 -------- FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report DECEMBER 12,2002 (Date of earliest event reported) CALLON PETROLEUM COMPANY (Exact name of registrant as specified in its charter) DELAWARE 001-14039 64-0844345 (State or other jurisdiction (Commission (I.R.S. Employer of incorporation or organization) File Number) Identification Number) 200 NORTH CANAL ST. NATCHEZ, MISSISSIPPI 39120 (Address of principal executive offices, including zip code) (601) 442-1601 (Registrant's telephone number, including area code) =============================================================================== -1- ITEM 1. CHANGES IN CONTROL OF REGISTRANT Not applicable ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS Not applicable ITEM 3. BANKRUPTCY OR RECEIVERSHIP Not applicable ITEM 4. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANTS Not applicable ITEM 5. OTHER EVENTS Not applicable ITEM 6. RESIGNATION OF REGISTRANT'S DIRECTORS Not applicable ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS Exhibits EXHIBIT NUMBER TITLE OF DOCUMENT -------------- ----------------- 99.1 Copy of Callon Petroleum Company's Press Release dated December 12, 2002 regarding operational/drilling updates. 99.2 Copy of Callon Petroleum Company's Press Release dated December 12, 2002 regarding 2003 financial and operation guidance. ITEM 8. CHANGE IN FISCAL YEAR Not applicable -2- ITEM 9. REGULATION FD DISCLOSURE Callon Petroleum Company made the press releases attached hereto as Exhibits 99.1 and 99.2 on December 12, 2002, providing details of operational/drilling updates and 2003 financial and operations guidance. -3- SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CALLON PETROLEUM COMPANY December 13, 2002 By: /s/ James O. Bassi ------------------------ James O. Bassi Vice President and Controller -4- EXHIBIT INDEX EXHIBIT NUMBER TITLE OF DOCUMENT -------------- ----------------- 99.1 Copy of Callon Petroleum Company's Press Release dated December 12, 2002 regarding operational/drilling updates. 99.2 Copy of Callon Petroleum Company's Press Release dated December 12, 2002 regarding 2003 financial and operation guidance. -5- EX-99.1 3 h02017exv99w1.txt COPY OF PRESS RELEASE - OPERATIONAL/DRILLING EXHIBIT 99.1 Callon Petroleum Company Updates Operational Activity, Drilling Results Natchez, MS (December 12, 2002)--Callon Petroleum Company (NYSE: CPE/CPE.PrA) today provided an update on current operational activity. It included: Deepwater Gulf of Mexico ------------------------ Ewing Bank Block 994 (Boomslang Discovery) - The initial exploratory well drilled at this location encountered 185 feet of pay. A delineation well failed to encounter hydrocarbons of sufficient commercial quantities to justify further development of this discovery. Callon has a 40% working interest. The company's proved reserves as of December 31, 2001, included 7.2 million barrels of oil and 13 billion cubic feet of natural gas attributable to Boomslang. Mississippi Canyon Blocks 538/582 (Medusa Discovery) -- The truss spar utilized in the floating production system for Callon's Medusa Discovery was loaded onto an ocean-going barge at Jebel Ali, United Arab Emirates, last month and currently is near Gibraltar and close to entering the Atlantic Ocean on its way to the Gulf of Mexico. The Medusa decks are nearing completion at Harbor Island, Texas, and will be loaded onto a barge at the end of January. During early February, the deck section will be lifted and affixed to the spar. First production is scheduled for May 2003. The Medusa facility is expected to produce 40,000 barrels of crude oil and 35 million cubic feet of natural gas per day, or approximately 41 million cubic feet of natural gas equivalent per day net to Callon's 15% working interest. Garden Banks Block 341 (Habanero Discovery) -- At the Company's Habanero Discovery, the #1 sidetrack 4 well is cased and ready to produce the Hab 52 and Hab 55 pay zones. A second well is scheduled to be drilled in the first half of 2003 in order to accelerate production from the Hab 52 oil reservoir. Production is scheduled to commence in September 2003 with a range of 20,000 to 25,000 barrels of oil and 70 million cubic feet of natural gas per day. Callon has an 11% percent working interest. Outer Continental Shelf ----------------------- Ship Shoal Blocks 28/35 -- The company has drilled a successful well at its Ship Shoal Blocks 28/35 prospect. The exploratory well, testing Pleistocene and Miocene objectives, was drilled to a measured depth of 15,237 feet (12,295 feet of true vertical depth) and encountered a total of 140 feet of net natural gas pay. The discovery well, Ship Shoal 28 #40, is currently being completed as a single producer in the deepest of three productive intervals. First production is expected in April 2003. The company has a 22% working interest. Callon Petroleum Company has been engaged in the exploration, development, acquisition and operation of oil and gas properties in the Gulf Coast region since 1950. This news release 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 -6- Exchange Act of 1934. Forward-looking statements include those related to the timing and success of future development operations. These forward-looking statements reflect the company's current views with respect to future events and financial performance. 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. Such factors include prices of oil and gas, inaccuracies in predicting the timing of future operations, possible cost overruns, operational risks and other risks. These factors are discussed at length in Callon's annual report on Form 10-K for fiscal year 2001 filed with the SEC. # -7- EX-99.2 4 h02017exv99w2.txt COPY OF PRESS RELEASE - FINANCIAL & OPERATIONAL EXHIBIT 99.2 Callon Petroleum Company Issues Guidance for First Quarter, Full Year 2003 Natchez, MS (December 12, 2002)--Callon Petroleum Company (NYSE: CPE/CPE.PrA) is issuing guidance for the first quarter and full year 2003. The guidance, found in the table below, is expressed in ranges for the detailed components. First Quarter and Full Year 2003 Guidance Estimates (In thousands, except per production unit amounts)
Guidance for 1st Guidance for Quarter 2003 Full Year 2003 ---------------- -------------- Description: - ------------ Production volumes (MMcfe/d) 43 - 47 58 - 64 Percent natural gas 93% 67% Average costs (per Mcfe): Lease operating expense $0.67 - $0.60 $0.66 - $0.60 General and administrative expense $0.33 - $0.30 $0.24 - $0.22 Interest expense $1.84 - $1.66 $1.38 - $1.26 Non-cash expenses included above $0.52 - $0.47 $0.40 - $0.36 DD&A $1.85 $1.85 Fixed delivery contract: Committed volume (MMcf) 750 1,000 Floor price (per Mcf) $3.75 $3.75 Ceiling price (per Mcf) $4.60 $4.60 Natural gas hedges: Collars: Volume MMcf 950 3,000 Average floor price $3.63 $3.54 Average ceiling price $4.94 $4.82 Floors: Volume MMcf 700 1,000 Average floor price $4.61 $4.50 Share data: Basic weighted average shares 13,550 13,550 Diluted impact of stock options, warrants 700 700 Diluted impact of convertible preferred stock 1,366 1,366
-8- Callon Petroleum Company has been engaged in the exploration, development, acquisition and operation of oil and gas properties in the Gulf Coast region since 1950. The preceding guidance estimates contain assumptions that we believe are reasonable. These estimates are based on information that is available as of the date of this news release. We are not undertaking any obligation to update these estimates as conditions change or as additional information becomes available. This news release 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. 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. Some of the factors which could affect our future results and could cause results to differ materially from those expressed in our forward-looking statements include: o general economic conditions; o volatility of oil and natural gas prices; o uncertainty of estimates of oil and natural gas reserves; o impact of competition; o availability and cost of seismic, drilling and other equipment; o operating hazards inherent in the exploration for and production of oil and natural gas; o difficulties encountered during the exploration for and production of oil and natural gas; o difficulties encountered in delivering oil and natural gas to commercial markets; o changes in customer demand and producers' supply; o uncertainty of our ability to attract capital; o compliance with, or the effect of changes in, the extensive governmental regulations regarding the oil and natural gasbusiness; o actions of operators of our oil and gas properties; o weather conditions; and o the risk factors discussed in our filings with the Securities and Exchange Commission, including but not limited to those in our Annual Report for the year ended December 31, 2001 on Form 10-K. The preceding estimates reflect our review of continuing operations only. These estimates do not take into account any material transactions such as sales of debt and equity securities, acquisitions or divestitures of assets, and formations of joint ventures. We continually review these types of transactions and may engage in one or more of these types of transactions without prior notice. # -9- -----END PRIVACY-ENHANCED MESSAGE-----