Callon Petroleum News

Technip said it has won a deepwater pipeline installation contract from Callon Petroleum Company for the Entrada oil field development in the . Technip will be responsible for installation of two 6.5-mile steel flowlines in a water depth of 1,364 m (4,475 ft) connected to two subsea wells, plus pipeline end terminations and inline structures and steel catenary risers which will be hooked up to the Magnolia production platform, at a depth of 1,452 m (4,675 ft), reports said. Technip will  provide engineering and procurement for the offshore project, which will use its Deep Blue installation vessel in the third quarter this year.

Natchez, Miss.-based Callon Petroleum Company announced it has elected Larry D. McVay to its board of directors. Callon Petroleum is an oil and gas exploration and production company, with 80 percent of its reserves located in deepwater regions of the Gulf of Mexico. McVay is a graduate of Texas Tech has 38 years of management and leadership experience with Amoco, BP and TNK-BP. “We are very fortunate to have someone with Larry’s extensive senior management experience and engineering expertise join our board,” said Fred Callon, the company’s chairman and CEO. Callon’s properties are concentrated in Louisiana, Alabama and offshore waters of the Gulf of Mexico.

The U.S. Department of the Interior's Minerals Management Service (MMS) announced the completion of the two-phase bid evaluation process for Lease Sale 172. This sale, held March 17, 1999, received 272 bids on 207 tracts offshore Louisiana, Mississippi, and Alabama. Of the 207 high bids received, MMS rejected 16 high bids totaling $12.7 million as insufficient for fair market value. Two of the tracts are located on the shelf and 14 tracts are located in deepwater. As a result, MMS awarded $159.1 million in high bids. Sonat Exploration GOM Inc. Spinnaker Exploration Company, L.L.C. BHP Petroleum (Deepwater) Inc. Elf Exploration, Inc.

TransCoastal Marine Services elected Richard O. Wilson to its board of directors on September 8. Wilson, who currently is a director of Callon Petroleum, has more than 40 years of management and executive experience in the marine construction industry.

Callon Petroleum Co. reported that all equipment and manpower were in place to bring the fire on its South Marsh Island Block 261 well in the Gulf of Mexico under control. Sunday afternoon Callon experienced a natural gas blowout while drilling the No. 2 test well at Block 261, located about 70 miles south of Lafayette, La. At the time of the incident all personnel were safely evacuated from R & B Falcon Corp. R & B Falcon/Cliffs Drilling Rig No. 153, which was drilling the well. Adverse weather prevented re-boarding of the drilling rig until Wednesday.