NATCHEZ, Miss., Oct. 24, 2016 /PRNewswire/ -- Callon
Petroleum Company (NYSE: CPE) ("Callon" or the "Company") today
announced the closing of its previously announced acquisition of
certain assets located in the Midland Basin within its WildHorse
operating area. On October 20, 2016,
the Company completed the acquisition of 6,904 gross (5,952 net)
acres primarily located in Howard County,
Texas from Plymouth Petroleum, LLC and additional sellers
that exercised their "tag-along" sales rights for total cash
consideration of $340 million,
subject to customary post-closing adjustments. The acquisition
increases Callon's surface acreage position in the Midland Basin to
over 40,000 net acres.
Fred Callon, Chairman and Chief
Executive Officer commented, "This transaction represents an
attractive bolt-on opportunity in our WildHorse area which now
comprises over 20,000 net acres focused in Howard County. After building this new core
area over the course of 2016, we have quickly transitioned our
WildHorse operations to support horizontal program development and
currently have one horizontal drilling rig dedicated to the area.
Following a completion in the Wolfcamp A zone with our Silver City A1H well immediately offsetting
the acquired acreage, we recently commenced drilling two-well pads
targeting both the Wolfcamp A and Lower Spraberry zones, and expect
to place new wells from this development program on production in
late 2016."
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 the implementation of
the Company's business plans and strategy, including future
drilling plans, 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 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 acquisition, 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:
Eric Williams
Manager, Finance
1-800-451-1294
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SOURCE Callon Petroleum Company