The assets produced approximately 1,945 barrels of oil equivalent per day (71% oil) for the month of October 2016.

The purchase also includes approximately 27,552 gross (16,098 net) surface acres, centered around a contiguous position in Ward County, Texas, with additional acreage in Pecos and Reeves Counties, Texas.

Callon Petroleum chairman and chief executive officer Fred Callon said: "Our initial entry into the Delaware Basin caps a transformative year for Callon.

“The Ameredev acquisition is the result of a patient, concentrated effort to identify the appropriate de-risked, oily acreage position in the Delaware Basin that provides the opportunity to leverage our Permian Basin technical expertise while complementing our deep inventory of high-return well locations and capital efficient operations in the Midland Basin.”

To acquire the assets, Callon Petroleum’s wholly owned subsidiary Callon Petroleum Operating Company has entered into an agreement with American Resource Development, American Resource Development Upstream, and American Resource Development Midstream.

The transaction is expected to be completed in on or before 13 February 2017, subject to the completion of customary closing conditions.

Following the completion of the acquisition, Callon's aggregate Permian Basin position will include approximately 55,500 net surface acres concentrated in four core operating areas within both the Midland and Delaware sub-Basins.

Callon said: “We are looking forward to adding a fourth core operating area to our Permian portfolio and are currently planning to deploy an operated horizontal drilling rig to this acreage by mid-2017, in addition to our plans to be running four horizontal rigs in the Midland Basin by the end of 2017.”

Callon Petroleum plans to fund the transaction through an equity offering.

In April, signed agreements to acquire certain assets operated by Big Star Oil and Gas in the US from three private companies for $220m.