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.