8-K

UNITED STATES
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
March 6, 2007
(Date of earliest event reported)

Callon Petroleum Company

(Exact name of registrant as specified in its charter)

Delaware
(State or other jurisdiction of
incorporation or organization) 001-14039
(Commission File Number) 64-0844345
(I.R.S. Employer
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)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

     o      Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

     o      Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

     o      Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

     o      Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 2 — Financial Information

Item 2.02. Results of Operations and Financial Condition

     The following information, including Exhibits 99.1, is being furnished pursuant to Item 2.02 “Results of Operations and Financial Condition,” not filed, for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act"). This information shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act"), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

     On March 7, 2007, Callon Petroleum Company issued the press release attached as Exhibit 99.1 providing information regarding the company’s estimated net proved reserves and estimated present value of such reserves for the period ending December 31, 2006.

     Also disclosed in the press release dated March 6, 2007 attached as Exhibit 99.2, Callon Petroleum Company announced that its fourth quarter and full year 2006 results of operations will be released on Friday afternoon, March 9, 2006. A conference call to discuss the results and current activity is scheduled on March 12, 2007, beginning at 10:00 a.m. Central Daylight Time.

Section 7 — Regulation FD

Item 7.01. Regulation FD Disclosure

     The following information, including Exhibit 99.1, is being furnished pursuant to Item 7.01 “Regulation FD Disclosure,” not filed, for purposes of Section 18 of the Exchange Act. This information shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or incorporated by reference in any filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Section 9 — Financial Statements and Exhibits

2 Item 9.01. Financial Statements and Exhibits

     (c) Exhibits

Exhibit Number	Title of Document
99.1	Press release dated March 7, 2007 providing information regarding Callon Petroleum Company’s estimated net proved reserves and associated present value of such reserves as of December 31, 2006.
99.2	Press release dated March 6, 2007 providing information regarding a scheduled conference call to be held on Monday, March 12, 2007 at 10 a.m. (CDT).

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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
March 7, 2007	By:	/s/ Bob F. Weatherly
		Bob F. Weatherly
		Executive Vice President and Chief Financial Officer

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Exhibit Index

Exhibit Number	Title of Document
99.1	Press release dated March 7, 2007 providing information regarding Callon Petroleum Company’s estimated net proved reserves and associated present value of such reserves as of December 31, 2006.
99.2	Press release dated March 6, 2007 providing information regarding a scheduled conference call to be held on Monday, March 12, 2007 at 10 a.m. (CDT).

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EX-99.1

EXHIBIT 99.1

For further information contact
Bob F. Weatherly, CFO or
Rodger W. Smith, Corporate Controller/ Treasurer
1-800-451-1294

FOR IMMEDIATE RELEASE

     Callon Petroleum Company Announces 2006 Year-end Reserves

     Natchez, MS (March 7, 2007) — Callon Petroleum Company (NYSE: CPE) announced today that it ended 2006 with estimated net proved reserves of 66.0 billion cubic feet of natural gas and 13.3 million barrels of oil, or 145.6 billion cubic feet of natural gas equivalent (Bcfe), a reduction of 43.0 Bcfe versus 2005 year-end proved reserves of 188.6 Bcfe.

     A majority of this reduction is attributable to a reclassification of reserves related to the company’s Entrada Field from ‘proved undeveloped’ to ‘probable’ by the company’s independent petroleum engineers in their year-end reserve report. The reclassification was the result of a revision in estimated proved reserves at Entrada based upon new performance data from analogous deepwater reservoirs.

     As of December 31, 2006, the Company had 46.8 Bcfe of probable reserves, or a total of 192.4 Bcfe of 2P (proved plus probable) reserves.

     According to Fred Callon, Chairman and CEO, “The reclassification of reserves in no way affects Callon’s desire and plans to move forward with the development of Entrada. To the contrary, we continue to make progress with our development plans, including negotiating a production handling agreement for a subsea tie back to the Magnolia Field TLP.” The company expects first production from Entrada in early 2009.

     At December 31, 2006, the company’s independent petroleum engineers estimated the present value of the company’s estimated future net revenues from proved reserves, excluding income taxes (which is a non-GAAP financial measure), using Securities and Exchange Commission (SEC) pricing guidelines for year-end 2006 discounted at 10%, to be $534.7 million. The year-end pricing used in calculating such present value averaged $5.78 per thousand cubic feet of natural gas and $54.07 per barrel of oil.

     The 2006 reserve report will be discussed during the scheduled conference call at 10 a.m. CDT Monday, March 12, 2007, which will be webcast live and can be accessed from Callon’s website at www.callon.com.

     Callon Petroleum Company is engaged in the exploration, development, acquisition and operation of oil and gas properties primarily in the Gulf Coast region. Callon’s properties and operations are geographically concentrated in Louisiana, Alabama and the offshore waters of the Gulf of Mexico.

     This news release contains 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. Forward-looking statements in this news release include our estimates of reserves and our expectations for development of our properties. 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 are discussed in our filings with the Securities and Exchange Commission, including our Annual Reports on Form 10-K, available on our website or the SEC’s website at www.sec.gov.

     The United States Securities and Exchange Commission 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 include in this news release an estimate of our net probable reserves, that the SEC’s guidelines strictly prohibit us from including in filings with the SEC. Investors are urged to consider closely the disclosure in our Form 10-K,

available from us at www.callon.com or from the SEC at www.sec.gov. You can also obtain this form from us by calling 601-442-1601 or from the SEC by calling 1-800-SEC-0330.

     In this news release, we use the financial measure “present value of estimated future net revenues from proved reserves, excluding income taxes.” This is a non-GAAP financial measure. We believe that present value of estimated future net revenues from proved reserves, excluding income taxes, while not a financial measure in accordance with generally accepted accounting principles, is an important financial measure used by investors and independent oil and gas producers for evaluating the relative value of oil and natural gas properties and acquisitions because the tax characteristics of comparable companies can differ materially. The total standardized measure for our proved reserves as of December 31, 2006 was $470.8 million. The standardized measure gives effect to income taxes, and is calculated in accordance with Statement of Financial Accounting Standards No. 69, “Disclosures About Oil and Gas Producing Activities.” The standardized measure of our estimated net proved reserves of $470.8 million equals the present value of our estimated future net revenue from proved reserves, excluding income taxes, of $534.7 million, less discounted estimated future income taxes relating to such future net revenues of $63.9 million.

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EX-99.2

EXHIBIT 99.2

For further information contact
Terry Trovato, 1-800-451-1294

FOR IMMEDIATE RELEASE

Callon Petroleum Company Announces Fourth Quarter, Full Year 2006
Reporting Date and Conference Call

     Natchez, MS (March 6, 2007)—Callon Petroleum Company (NYSE: CPE) today announced its fourth quarter and full year 2006 results of operations will be released on Friday afternoon, March 9, 2006. A conference call discussing the results and current activity is scheduled for 10 a.m. Central Daylight Time Monday, March 12, 2007.

     The conference call may be accessed live over the internet through the Presentations Section of the company’s website at www.callon.com, and will be archived there for subsequent review.

     In addition, a telephone recording of the conference call will be available from noon March 12 until noon March 13 Central Daylight Time, and may be accessed by dialing 1-800-633-8284 and entering Reservation Number 21332325.

     Callon Petroleum Company has been engaged in the exploration, development, acquisition and production of oil and gas in the Gulf Coast region since 1950. Callon’s properties and operations are geographically concentrated in the offshore waters of the Gulf of Mexico.

     This news release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The opinions, forecasts, projections or other statements, other than statements of historical fact, are forward-looking statements. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to have been correct. Certain risks and uncertainties inherent in our businesses are set forth in our filings with the SEC. These risks and uncertainties include general economic conditions; the volatility of oil and natural gas prices; the uncertainty of estimates of oil and natural gas reserves; the availability and cost of seismic, drilling and other equipment; operating hazards inherent in the exploration for and production of oil and natural gas; difficulties encountered during the exploration for and production of oil and natural gas; weather conditions; and other factors listed in the reports filed by us with the SEC. For additional information with respect to these and other factors, see our reports filed with the SEC. Our forward-looking statements speak only as of the date made, and we have no obligation to update these forward-looking statements.

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