- Gulf of Mexico E&P Company is an oil and gas exploration and production company operating in the Gulf of Mexico. Production has increased 14% and cash flow has increased 56% in recent years. - The company operates in shallow waters and deepwater areas of the Gulf through various producing properties and leaseholds. Recent drilling has led to over 10 discoveries and increased production. - Going forward, the company plans to continue its active exploration program targeting prospects in the Gulf through drilling and seismic data analysis to further increase production and cash flows.

1. Louisiana Energy Conference November 29, 2006

4. Area of Operations Productive - Proved Reserves Undeveloped Leases SHALLOW MIOCENE OUTER CONTINENTAL SHELF DEEPWATER

5. Major Producing Properties N. PADRE ISLAND 913 MOBILE 864 AREA HIGH ISLAND 119 HABANERO MEDUSA

15. Louisiana Transition Zone

16. Louisiana Transition Zone CALLON LOUISIANA STATE AND PRIVATE TRACTS LEASED 2004-2005 Hog Bayou East Hog Bayou West Hackberry Beach Prairie Beach S. Calcasieu Pass Mud Island North Pronghorn

18. Near-Term Deepwater Drilling Louisiana Mississippi Texas Alabama West Delta High Island Galveston West Cameron So. Marsh Island Ship Shoal Breton Snd Mobile Main Pass Mississippi Canyon Garden Banks Ewing Bank Brazos East Breaks Alaminos Canyon BOB NORTH NORMAN MIDWAY

19. 815 816 859 860 903 904 772 895 815 816 Bob North Prospect Shell “ Mensa” Field BP “ Thunder Horse” Discovery Shell “ Ursa” Field Shell “ Princess” Shell “ Mars” Field Dominion “ Devils Tower” Discovery Drilling Unit Tubular Bells Discovery 31,131’ TD 190’ pay

21. Habanero Entrada Norman Prospect Norman Prospect Concho Well

22. Norman Prospect LOCATION: GB BLOCKS 434 / 435 OPERATOR: KERR-MCGEE OWNERSHIP: 5% WATER DEPTH: 2,526’ OBJECTIVE DEPTH: 18,500’ – 28,000’ TRAP TYPE: SUBSALT 3-WAY AGAINST BASE SALT AND WELD RESERVOIR: UPPER-MIDDLE MIOCENE SANDS POTENTIAL: 200 – 500 MMBOE CURRENTLY DRILLING

23. East Breaks / Alaminos Canyon Play NPI 913 Data courtesy of WesternGeco AC 529 AC 406 AC 178 EB 816 EB 466

25. Deepwater Development Louisiana Mississippi Texas Alabama West Delta High Island Galveston West Cameron So. Marsh Island Ship Shoal Breton Snd Mobile Main Pass Mississippi Canyon Garden Banks Ewing Bank Brazos East Breaks Alaminos Canyon ENTRADA

28. 2005 - 2006 Drilling Success TEN DISCOVERIES TWO DEVELOPMENT WELLS

29. Current Production From Recent Discoveries NPI BLOCK 913 #1 WC BLOCK 295 #2 HI BLOCK 73 WC BLOCK 295 #3 BRAZOS 405 #1 HI BLOCK A-540 EC BLOCK 268 HI BLOCK 165 PRAIRIE BEACH EC BLOCK 109 WC BLOCK 295 #4 HI BLOCK 130 #1 PUMPKIN RIDGE 50.0% 20.5% 33.7% 20.5% 50.0% 60.0% 50.0% 16.7% 75.0% 25.0% 20.5% 16.7% 10.0% MAR 06 APR 06 APR 06 AUG 06 AUG 06 SEP 06 SEP 06 OCT 06 OCT 06 OCT 06 JAN 07 FEB 07 FEB 07 TOTAL 15.7 12.5 5.3 9.7 2.8 9.9 6.3 45.0 13.0 9.7 15.0 45.0 5.0 194.9 6.4 2.0 1.4 1.6 1.1 4.8 2.4 6.1 7.6 2.0 2.5 6.1 0.4 44.4 WELL W.I. 1 ST PROD . MMCFE/D GROSS NET

30. 2006 Exploration Activity PROSPECT W.I. PTD SPUD DATE STATUS

32. Forward-Looking Statements and Reserve Estimates This presentation 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 as of this date. 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. Cautionary Note to Investors -- The 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 use certain terms in this presentation, such as "reserve potential,” 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 by contacting Investor Relations, Callon Petroleum Company, 200 N. Canal Street, Natchez, MS 39120. You can also obtain this form from the SEC by calling 1-800-SEC-0330.