NATCHEZ, Miss., Nov. 9, 2015 /PRNewswire/ -- Callon
Petroleum Company (NYSE: CPE) ("Callon" or the "Company") today
announced it has acquired additional working interests in the Carpe
Diem and Casselman-Bohannon fields in the Central Midland Basin for an approximate
aggregate price of $29.5 million in
cash. The acquisition was funded with borrowings from its revolving
credit facility.
Transaction highlights include:
- Average working interest of approximately 15.24% (12.07% net
revenue interest) in the Carpe Diem field (2,586 gross acres),
increasing Callon's working interest to approximately 100.00%
(79.19% net revenue interest)
- Average working interest of approximately 3.75% (2.81% net
revenue interest) in the Casselman-Bohannon fields (6,238 gross
acres), increasing Callon's working interest to approximately
66.45% (49.83% net revenue interest)
- 628 net surface acres, predominantly in Midland and Andrews Counties, Texas
- Estimated net daily production of 360 Boe/d (84% oil) for the
month of October 2015
Following the Company's recent operational shift to focus
exclusively on the Central Midland
Basin, Callon has dedicated both of its two horizontal rigs to this
area. The Company plans to direct approximately 80% of its
preliminary 2016 operational capital program to the Carpe Diem and
Casselman-Bohannon fields. Callon estimates that the 360 Boe/d of
current net daily production acquired will increase at a similar
rate as the Company's preliminary forecast of approximately 20%
annual growth in 2016 for total Company production volumes.
"These core fields form the foundation of our current drilling
plans and are currently producing from the Lower Spraberry, Middle
Spraberry and Wolfcamp B zones." stated Fred Callon, Chairman and CEO. "Our investment
in additional working interests will immediately contribute to
value creation through our drilling plan focused on the Lower
Spraberry in the near-term, with future opportunities in multiple
delineated zones."
About Callon Petroleum Company
Callon is an independent energy company focused on the
acquisition, development, exploration, and operation of oil and gas
properties in the Permian Basin in West
Texas.
Cautionary Statement Regarding Forward Looking
Statements
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. Forward-looking
statements include all statements regarding reserve quantities,
production estimates, planned capital expenditures, the
implementation of the Company's business plans and strategy, as
well as statements including the words "believe," "expect," "plans"
and words of similar meaning. These statements reflect the
Company's current views with respect to future events and financial
performance. No assurances can be given, however, that these events
will occur or that these projections will be achieved, and actual
results could differ materially from those projected as a result of
certain factors. Some of the factors which could affect our future
results and could cause results to differ materially from those
expressed in our forward-looking statements include the Company's
ability to realize the anticipated benefits of the pending
acquisition, the forfeiture of our deposit under the acquisition
agreement, the volatility of oil and gas prices, ability to drill
and complete wells, operational, regulatory and environment risks,
our ability to finance our activities and other risks more fully
discussed in our filings with the Securities and Exchange
Commission, including our Annual Reports on Form 10-K, available on
our website or the SEC's website at www.sec.gov.
This news release is posted on the Company's website at
www.callon.com and will be archived there for subsequent
review. It can be accessed from the "News" link on the top of the
homepage.
For further information contact:
Joe Gatto
Chief Financial Officer, Senior Vice President and Treasurer
1-800-451-1294
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SOURCE Callon Petroleum Company