NATCHEZ — Callon Petroleum Company has signed a purchase and sale agreement with Ambrose Energy I, Ltd., a subsidiary of ExL Petroleum, LP, to acquire its interests in 22 producing wells located in Crockett, Ector, Midland and Upton Counties, Texas, for $16.25 million.
The company estimates the total proved reserves being acquired to be approximately 1.5 million barrels of oil equivalent.
Subject to examination of title and environmental issues, and termination of preferential purchase rights, Callon expects to close on or before Oct. 31, 2009. Upon closing, Callon will operate substantially all of the production and development.
“This is a first step in rebalancing Callon’s assets between offshore and onshore properties,” said Fred Callon, chairman and CEO. “The Permian Basin Wolfberry play provides our company with repeatable, oil-focused growth opportunities that can be further improved over time and forms a competitive foundation for Callon’s presence in the region.”