Callon Petroleum Co. (CPE) closed its acquisition of certain Midland Basin assets operated by Big Star Oil and Gas LLC, the company said May 31.
The acquisition’s total consideration was about $220 million in cash and 9.3 million Callon common shares, subject to customary post-closing adjustments. Upon the transaction’s closing, Callon had about 131 million outstanding common shares.
The assets include about 17,298 gross (14,089 net) surface acres primarily in Howard County, Texas, with additional acreage in Martin, Borden and Dawson counties. Also included is the area of mutual interest transaction in western Reagan County that closed earlier in May.
Fred Callon, chairman and CEO, said that the company has named the new acreage position the Wildhorse area. He said the first well is scheduled to be completed in mid-June, and there are plans to add a drilling rig in the second half of the year.
The Big Star acquisition increases Callon's surface acreage position in the Midland Basin to about 34,000 net acres and establishes a new core area for development.
Callon Petroleum Co. is based in Natchez, Miss.
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