NATCHEZ, Miss., Feb. 13, 2017 /PRNewswire/ -- Callon Petroleum
Company (NYSE: CPE) ("Callon" or the "Company") today announced the
closing of its previously announced acquisition of oil and natural
gas assets in the southern Delaware Basin from American Resource
Development LLC. On February 13,
2017, the Company completed the acquisition of approximately
16,700 net surface acres in Ward
and Pecos Counties, Texas, comprised of an initially disclosed
amount of 16,098 net acres and an incremental 590 net acres
acquired between signing and closing of the transaction that are
either within or contiguous to the Ward
County footprint. Inclusive of the incremental acreage and
the purchase of the midstream assets of Ameredev Midstream
Development LLC, total cash consideration paid for the acquisition
was $633 million, subject to
customary purchase price adjustments.
The Corbets 34-149 2WA well, with a 10,000' drilled lateral
targeting the Lower Wolfcamp A, is currently flowing back in
Ward County. In addition, a second
10,000' drilled lateral targeting the Wolfcamp B is awaiting
completion in an offsetting drilling unit. After closing of this
transaction, Callon's position in the Permian Basin now totals over
56,000 net surface acres.
Fred Callon, Chairman and Chief
Executive Officer commented, "Our initial entry into the
Delaware Basin represents another
important strategic step for Callon in the Permian Basin. The
contiguous acreage position resides within a deep, over-pressured
region and includes multiple, oil-weighted target intervals. We
currently estimate over 480 gross horizontal locations on the
acquired Ward County acreage in
just the Wolfcamp A and B zones that have been well-delineated in
the area, with potential upside locations in the Wolfcamp C and
various Bone Spring intervals, in addition to emerging development
opportunities in Pecos County.
This new development unit, our fourth core operating area in the
Permian which we have named Spur, will be an important component of
our growing portfolio of investment opportunities that we believe
will drive attractive returns on total capital employed as our
Permian drilling activity increases. We are preparing to add a
dedicated horizontal drilling rig to the Spur operating area by
mid-year 2017, which will be our fourth operated rig in the
Permian, with the potential for incremental drilling activity in
the Delaware Basin in
2018."
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