Callon Petroleum Company has acquired additional working interests in the Carpe Diem and Casselman-Bohannon fields in the Central Midland Basin for an approximate aggregate price of $29.5 million in cash. The acquisition was funded with borrowings from its revolving credit facility.
Transaction highlights include:
•Average working interest of approximately 15.24% (12.07% net revenue interest) in the Carpe Diem field (2,586 gross acres), increasing Callon's working interest to approximately 100.00% (79.19% net revenue interest)
•Average working interest of approximately 3.75% (2.81% net revenue interest) in the Casselman-Bohannon fields (6,238 gross acres), increasing Callon's working interest to approximately 66.45% (49.83% net revenue interest)
•628 net surface acres, predominantly in Midland and Andrews Counties, Texas
•Estimated net daily production of 360 Boe/d (84% oil) for the month of October 2015
Following the Company's recent operational shift to focus exclusively on the Central Midland Basin, Callon has dedicated both of its two horizontal rigs to this area. The Company plans to direct approximately 80% of its preliminary 2016 operational capital program to the Carpe Diem and Casselman-Bohannon fields. Callon estimates that the 360 Boe/d of current net daily production acquired will increase at a similar rate as the Company's preliminary forecast of approximately 20% annual growth in 2016 for total Company production volumes.