Callon Petroleum’s subsidiary Callon Petroleum Operating has completed a previously announced $538.6m acquisition of oil and natural gas assets in the southern Delaware Basin from Cimarex Energy.
Image: Onshore drilling. Photo: courtesy of Stuart Miles/Freedigitalphotos.net.
The acquisition includes approximately 28,000 net surface acres primarily adjacent to Callon’s Spur operating area in Ward County.
In addition to the closing of this acquisition, Callon provided an update to its full year 2018 guidance to reflect the revised full year outlook.
Key highlights include:
Raised the midpoint of annual 2018 production guidance by 1,500 BOE/d as the result of solid year-to-date performance in the Spur area and the impact of production from the acquisition
Reiterated production target of over 40,000 BOE/d for 4Q18
Raised the midpoint of net operated horizontal wells placed on production by 9% due to incremental activity on the acquired properties, realized drilling and completion efficiencies, and a sustained increase in non-operated activities on both legacy and acquired properties
Reduced full year 2018 LOE guidance by 4% as incremental benefits from strategic infrastructure investments are realized
Callon Petroleum president and CEO Joe Gatto said: “We are excited to get to work on our new combined Spur footprint, and have already started the completion of a previously drilled Lower Wolfcamp A well and commenced drilling of an additional well on the acquired acreage.
“As previously discussed, this strategic “bolt-on” acquisition is highly contiguous to our legacy footprint and will offer significant advantages from extended lateral lengths and shared infrastructure.
“Our team has done a great job of preparing for the transition since the transaction announcement in May, and we expect to have a seamless integration into our Spur operations.”
Source: Company Press Release