Press release

NATCHEZ — Callon Petroleum Company (NYSE: CPE) recently confirmed that Lone Star Value Management has filed notice to nominate two candidates to stand for election to Callon’s Board of Directors at the 2014 annual meeting.

The company issued the following statement:

“Callon’s Board of Directors and management team are fully committed to creating value for all Callon shareholders and welcome shareholder input regarding this objective. We have had conversations with Lone Star and will consider its suggestions, just as the company does for all Callon shareholders.

“Callon’s board and management deliver on the promises we make. Through focused execution, we have sold non-core assets in the Gulf of Mexico and successfully completed Callon’s transformation to an onshore operator. As a result, we have optimized and de-risked the company’s asset base, lowered its cost of capital, and established a solid track record of both production and reserve growth. Our record of achievement has led to a 74 percent increase in Callon’s stock price since April when we announced our intention to exit the Gulf of Mexico and become an onshore operator, and a 29 percent increase in Callon’s stock price over the past year, outperforming the SIG Oil Exploration & Production Index as well as the S&P 500 in both periods.

“Importantly, we are well-positioned to build on this strong momentum. Infrastructure is in place to accelerate our drilling activity in the Permian Basin, where we expect our production to ramp up significantly in the near-term. Indeed, we expect more than 60 percent growth in production over the next year, with 25 new horizontal wells scheduled to come online during this time frame. This growth, together with additional actions we are taking to further expand our drilling inventory, is expected to drive even greater value creation for Callon shareholders.

“Callon’s board is composed of highly qualified directors who are active, engaged and have the expertise and experience needed to support the company’s continued growth and success. Callon’s board and management are committed to sound corporate governance policies and practices that best serve the interest of all Callon shareholders.”

“Callon notes that Lone Star has stated that it is open to continuing discussions, and the Company will seek to maintain an open dialogue with Lone Star. The Callon Board will consider Lone Star’s nominations in due course and will present details regarding the Board’s recommended slate of director nominees in the Company’s definitive proxy statement and other materials, to be filed with the Securities and Exchange Commission and mailed to all stockholders eligible to vote at the 2014 Annual Meeting, which has yet to be scheduled.

J.P. Morgan is serving as the Company’s financial advisor, and Wachtell, Lipton, Rosen & Katz and Haynes & Boone are serving as legal advisors.