Lone Star Value Seeks To Improve Callon Petroleum's Corporate Governance

(RTTNews) - Lone Star Value Management, LLC, a significant shareholder in Callon Petroleum Company, (CPE), with ownership of approximately 6.3% of CPE's outstanding shares of common stock, announced that an affiliate of Lone Star Value has delivered a formal nomination of director candidates for election to the board of directors of CPE at the upcoming 2014 annual meeting of CPE's shareholders.

Lone Star Value believes CPE is deeply undervalued and substantial change is needed on the Board to ensure that appropriate actions are taken to prevent further shareholder dilution, lower CPE's cost of capital, and create value for all CPE shareholders. These changes should include the addition of new highly-qualified, independent directors on the Board with relevant credentials for CPE, as well as direct shareholder representation to ensure the best interests of all shareholders are appropriately represented in the boardroom at all times.

Lone Star Value said that in the past few months, it has clearly expressed its views to the Board and management of CPE and has made every effort to engage in constructive discussions that would lead to meaningful improvement in the Board and corporate governance practices of CPE. Lone Star Value believes the suggestions it has made would meaningfully improve shareholder rights and representation at CPE. Unfortunately, to date the Company has rejected all suggestions made by Lone Star Value.

Accordingly, Lone Star Value noted that it has nominated two highly-qualified director candidates for election to the Board at the 2014 Annual Meeting. Lone Star Value's candidates, Jeffrey E. Eberwein and Matthew Regis Bob, have significant and relevant experience and exceptional track records of identifying and executing on opportunities to unlock value for the benefit of all shareholders.

Lone Star Value also said it firmly believes that CPE must significantly improve its corporate governance structure and practices. Lone Star Value has strongly suggested that the Board should immediately take the necessary steps to declassify its structure and to eliminate all supermajority vote requirements from its organizational documents. These changes are imperative to ensure good corporate governance and shareholder rights.

Lone Star Value stated that it is open to continuing its discussions with the Board regarding its composition and corporate strategy, and remains amenable to reaching a mutually agreeable resolution to re-constitute the Board in a manner that is in the best interests of all shareholders. However, if an agreement is not reached, Lone Star Value is fully prepared to solicit the support of its fellow shareholders to elect a new slate of directors at the 2014 Annual Meeting who are committed to representing the best interests of all CPE shareholders.