Boston, MA 10/10/2014 (wallstreetpr) – Callon Petroleum Company (NYSE:CPE) gave an update about its previously acquired deal worth 6230 gross and 3862 of net surface acres. While it also detailed about other production based in Midland, Martin, Andrews, and Ector Counties in Texas. The company also provided estimated adjustments done for the purchase price or total net paid value for the acquisition which was $205 million approximately.
Callon Petroleum Company (NYSE:CPE) has developed these properties with vertical wells with a good progress on horizontal front. Drilling of 2 horizontal Wolfcamp B wells have been completed since June 2014.Out of the two, Casselman 8-1H is complete while Bohannon 24-2H is also in the process of completion. Additionally, Casselman 40-4 H, which is a horizontal Lower Spraberry well, is also undergoing the process of drilling.
Adding Critical Mass
The Chairman and CEO of Callon Petroleum Company (NYSE:CPE), Fred Callon commented that this strategic decision of acquisition will add a good weightage for the company’s profile. According to him,the company is capable enough to demonstrate its strengths as an operator in the adjacent fields. The company is investing into equity and debt markets and has a good financial base with increased capacity of borrowing. Therefore, the company has sufficient liquidity and long-term capital to implement operational plans in the year 2015 and further in the coming years.
Strengthening Finances
Recently, the company completed an equity offer worth gross $129 million and also acquired a new term loan for gross $300 million. The company’s current liquidity is about $242 million as on September 30, 2014. Callon replaced its old term loan worth $125 million with the new term loan, securitized with a lien pledged under the company’s revolving credit provision. This bears an interest at the rate of LIBOR plus 7.50% per annum on Eurodollar advances. The Term Loan facility’s maturity date is October 8,2021.It can be prepaid after one year at a declining premium.
Callon Petroleum Company (NYSE:CPE) is an energy company which focuses on exploration, acquisition, development, operation and maintenance of oil and gas properties based in the Permian Basin in West Texas.
