Callon Petroleum Company
200 North Canal Street, Natchez, Mississippi, United States

Founded in 1950, we are an independent oil and natural gas company focused on growing production and reserves from our oil-weighted, multi-play, multi-pay assets in the Permian Basin.

Implementing a Focused Strategy with a Commitment to Growth

We have established ourselves as a pure-play, Permian company over the last five years, becoming one of the leading horizontal operators in the Midland Basin. As part of that process, we have continued to add to our team across all disciplines which has positioned us to capitalize to grow our asset base in future years.

We operate nearly 100% of our Permian acreage, which provides additional flexibility to modify our development plans based on a continuously changing environment and commodity prices. Our current acreage position in the Basin provides visible multi-year growth potential from our more than 1,500 horizontal drilling locations from nine distinct zones (or over 900 horizontal drilling locations limited only to the five currently producing zones).

Our net daily production during 2015 averaged 9,610 Boepd, a 70% increase over 2014... and exited 2015 with production of nearly 11,000 Boepd, a 45% increase over our exit rate of 2014. Importantly, our early transition to a horizontal development program, which was expanded from three productive zones in 2013 to five zones in 2015, adding the Lower and Middle Spraberry zones to the already producing Wolfcamp A and two producing zones from the Wolfcamp B, continues to improve our overall capital efficiency and is driving substantial increases in our proven reserve base.

Callon Share Information

Shares of Callon Petroleum Company common stock and Preferred Series A stock are both traded on the New York Stock Exchange under the symbols "CPE" and "CPE-A", respectively. The Company's objective is to enhance stockholder value through sustained growth in its reserve base, production levels and resulting cash flows from operations.

Strategy

Drive Growth with Horizontal Drilling

During 2015, our horizontal drilling program drove an increase in Permian proved reserves of nearly 21.5 million barrels of oil equivalent, replacing over 600% of our 2015 production with proved reserve additions. At the end of 2015, our proved reserves had increased over 65% versus 2013 to over 54 million barrels of oil equivalent, and were comprised of over 80% oil. Additionally, we added the Middle Spraberry to our producing zones within the basin, resulting in five producing zones including the Wolfcamp A, Upper & Lower Wolfcamp B and the Middle & Lower Spraberry. We intend to continue building on the success of our development program through our increasing technical knowledge base and by the ongoing expansion of our horizontal pad drilling efforts.

Expand the Drilling Portfolio

Our near-term horizontal drilling activity will target the Lower Spraberry shale as we focus on projects with the highest return potential in the current environment. We will also continue selective delineation of the Middle Spraberry and Wolfcamp A in the Central Midland Basin, and monitor the longer-term performance of other emerging zones such as the Jo-Mill, Cline and Wolfcamp C that have been targeted by other industry players. We currently have an inventory of over 900 identified locations targeting the five zones that are currently producing on our asset base. This location count increases to over 1,500 identified locations after including high-graded opportunities in zones that have been drilled by other operators in offsetting acreage.

Selective Acquisitions/Partnerships

Our acquisition and non-organic growth initiatives are primarily focused on the Midland Basin, but we are also evaluating opportunities in the Delaware Basin that are suited to our operational expertise. We have acquired approximately $650 million of properties in the Midland Basin to date, building a position that currently covers ten counties in Texas. We believe that our reputation as a horizontal operator, a legacy position that is 100% HBP and only modest drilling commitments on our most recently acquired properties will provide unique advantages as we pursue future transactions in the Permian Basin.