NATCHEZ &045;&045; Hurricane Ivan inflicted damage on two Callon Petroleum Co. production facilities in the Gulf of Mexico, but the impact on the company will not be major, said John S. Weatherly, chief financial officer.

&uot;Every day you lose production, you lose revenue. It hurts. But the cost to Callon we estimate will be between $600,000 and $700,000,&uot; he said. &uot;Considering we’re talking about a $250-million facility, the damage is minor.&uot;

Last week’s major hurricane devastated the coastal areas of Alabama and the Florida Panhandle after churning across the Gulf with winds up to 165 miles per hour.

Affected by Ivan were the Medusa Field, where Callon

owns a 15 percent working interest with Murphy Oil Corp. as operator; and four blocks in the Mobile Bay Area, where Callon owns a 66.4 percent interest in one block and 100 percent working interest in the other three.

&uot;The damage that has the most impact is at Medusa,&uot; Weatherly said. &uot;The damage was to the platform-mounted workover rig.&uot;

The top 25-foot section of that temporary rig, used when a well is brought on line, toppled and fell to the gulf floor. A small section of it remains hanging from the south side of the main structure.

&uot;Fortunately, the part that is hanging fell to the south side. The pipelines are on the north side, and they were not damaged,&uot; Weatherly said. &uot;To our knowledge, no production parts were damaged. There was not a lot of damage to the facility itself.&uot;

At the Mobile Bay Area, winds and storm surges took rig furnishings such as hand rails and stairways, Weatherly said.

&uot;All the individual wells have jackets around them called caissons. When the waves hit the caissons, the peripheral equipment took a hit, such as remote control devices, navigational aid lights, radios and fog horns but no major things,&uot; he said.

The Medusa Field will be about five weeks getting back on line, with most of that time dedicated to retrieving the section that fell to the gulf floor and the disassembling and unloading of the remaining damaged part of the workover rig. The Mobile production facilities should be running again in a week.

Callon, based in Natchez, was established more than 50 years ago. The company’s properties and operations are concentrated in the Gulf. In August, the company reported record results of operations for the first six months of 2004, with oil and gas sales of $69.5 million, as compared to $39.7 million during the same six-month period in 2003.