Callon Petroleum Co. (NYSE: CPE) has closed its previously announced acquisition of certain assets in the Midland Basin operated by Big Star Oil and Gas LLC, including approximately 17,298 gross (14,089 net) surface acres, primarily located in Howard County, Texas, with additional acreage in Martin, Borden and Dawson counties, Texas.
Including the previously announced area of mutual interest transaction in western Reagan County that closed earlier this month, the Big Star acquisition increases Callon's surface acreage position in the Midland Basin to approximately 34,000 net acres and establishes a new core area for development.
Total consideration paid for the acquisition was approximately $220 million in cash and 9.3 million shares of Callon common stock, subject to customary post-closing adjustments. Upon closing of the transaction, the company had approximately 131,090,644 shares of common stock outstanding.
Fred Callon, chairman and CEO of Callon said the company expects to complete its first well on the acreage in mid-June 2016 and is finalizing plans to add a drilling rig to the area in the second half of the year.