Callon Petroleum Co., Natchez, Miss., has completed its acquisition of certain assets in the Midland basin in Texas operated by Big Star Oil & Gas LLC, Midland, Tex., for $220 million in cash and 9.3 million shares of Callon common stock.
The deal includes 17,298 gross (14,089 net) surface acres, primarily in Howard County, with additional acreage in Martin, Borden, and Dawson counties.
Including the previously reported 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 34,000 net acres and establishes a new core area for development.
“We are looking forward to advancing our planned development of this important new acreage position centered in Howard County that we have named the WildHorse area,” commented Fred Callon, chairman and chief executive officer. “We currently expect to complete our first well on this acreage in mid-June and are finalizing plans to add a drilling rig to the area in the second half of the year."