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 (DATE OF EARLIEST EVENT REPORTED): September 2, 1998
CALLON PETROLEUM COMPANY
______________________________________________________
(Exact name of Registrant as specified in its charter)
Delaware 0-25192 64-0844345
_______________________________ ___________ ___________________
(State or other jurisdiction of Commission (I.R.S. Employer
incorporation or organization) File Number Identification No.)
200 North Canal Street
Natchez, Mississippi 39120
____________________________________________________________
(Address of Principal Executive Offices)(Including Zip Code)
(601) 442-1601
____________________________________________________
(Registrant's telephone number, including area code)
Item 5. Other events
Callon Petroleum Company announced on September 2, 1998 that its Board of
Directors has authorized the repurchase of up to $10 million in common stock.
A copy of the press release is filed as an exhibit to this Form 8-K.
Item 7. Exhibits
1. Underwriting Agreement*
2. Plan of acquisition, reorganization, arrangement, liquidation or
succession.*
4. Instruments defining the rights of security holders, including
indentures*
16. Letter re change in certifying accountants*
17. Letter re director resignation*
20. Other documents or statements to security holders*
23. Consents of experts and counsel*
24. Power of attorney*
27. Financial data schedule*
99. Additional exhibits
Exhibit 99.1 Press release issued by the registrant on
September 2, 1998.
_________________________
* Inapplicable to this filing
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 thereunto duly authorized.
CALLON PETROLEUM COMPANY
Date: September 2, 1998 By /s/ John S. Weatherly
_________________ ____________________________
John S. Weatherly, Senior Vice
President, Chief Financial Officer
and Treasurer
Exhibit 99.1
For further information
Contact John S. Weatherly, CFO 1-800-451-1294
FOR IMMEDIATE RELEASE
_____________________
Callon Petroleum Company Announces Stock Buyback Program
Natchez, MS (September 2, 1998) - Callon Petroleum Company (NYSE: CPE/CPE.PrA)
announced today that its Board of Directors has authorized the repurchase of
up to $10 million in common stock. The purchases may be made on the open
market or in privately negotiated transactions, depending upon market
conditions and other factors. Callon has approximately 8,039,000 shares
outstanding. Repurchased shares will be held in the company's treasury and
used for general corporate purposes.
The company's ability to purchase common stock currently is limited by covenants
in its 10.125% Senior Subordinated Notes. The amount the company may repurchase
under these covenants will increase or decrease in the future based upon,
among other things, earnings and losses sustained by the company.
Fred L. Callon, president and CEO, explains the decision was made "because
we believe the stock is undervalued. This gives us an opportunity to buy at a
significant discount when you consider both our net asset value and book value
per share are substantially above the current market value. This stock
repurchase program is just another example of our confidence in the planned
growth of the company."
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 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, including statements regarding the company's intent to
repurchase its common stock and the amount of such repurchases. The company
can give no assurances that the assumptions upon which such forward-looking
statements are based will prove to have been correct. Important factors that
could cause actual results to differ materially from the company's expectations
("Cautionary Statements") include the volatility of oil and gas prices and
markets, risks inherent in exploring for, developing and producing oil and
gas and the effect of governmental, environmental and other regulations.
These factors are further described in Callon's filings with the Securities
and Exchange Commission, including its Annual Reports on Form 10-K.
