NATCHEZ, Mississippi – Callon Petroleum Co. (NYSE:CPE) closed the sale of its 11.25% working interest in the Gulf of Mexico Habanero field (Garden Banks block 341). The company sold its interest to Shell Offshore Inc., a subsidiary of Royal Dutch Shell plc (NYSE:RDS.B), for an estimated $39.5 million.
Callon will use the proceeds to fund its efforts onshore in West Texas.
“The sale of our Habanero interest enables us to pay down a significant portion of our revolving bank debt and strengthen our balance sheet as we focus our efforts on the Permian basin,” said Fred Callon, chairman and CEO. “This additional financial flexibility will position the Company to pursue horizontal program development of our Southern Midland assets while continuing to evaluate our Northern Midland position for future development operations.”