NATCHEZ, Miss., May 31, 2016 /PRNewswire/ -- Callon
Petroleum Company (NYSE: CPE) ("Callon" or the "Company") today
announced the closing of its previously announced acquisition of
certain assets in the Midland Basin operated by Big Star Oil and
Gas, LLC ("Big Star"), including approximately 17,298 gross (14,089
net) surface acres, primarily located in Howard County, Texas, with additional acreage
in Martin, Borden and Dawson counties, Texas. Including the previously announced area
of mutual interest transaction in western Reagan County that closed earlier this month,
the Big Star acquisition increases Callon's surface acreage
position in the Midland Basin to approximately 34,000 net acres and
establishes a new core area for development. Total consideration
paid for the acquisition was approximately $220 million in cash and 9.3 million shares of
Callon common stock, subject to customary post-closing
adjustments. Upon closing of the transaction, the Company had
approximately 131,090,644 shares of common stock
outstanding.
Fred Callon, Chairman and Chief
Executive Officer commented, "We are looking forward to advancing
our planned development of this important new acreage position
centered in Howard County that we
have named the WildHorse area. We currently expect to complete
our first well on this acreage in mid-June
2016 and are finalizing plans to add a drilling rig to the
area in the second half of the year."
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:
Joe Gatto
Chief Financial Officer, Senior Vice President and Treasurer
1-800-451-1294
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SOURCE Callon Petroleum Company