NATCHEZ — Callon Petroleum Company announced the closing of the sale of 1.1 million shares of its common stock pursuant to the underwriters’ exercise of the over-allotment option, which the company granted in connection with Callon’s previously announced public offering of nine million shares of its common stock.
The exercise of the over-allotment option brings the total net proceeds of the offering to approximately $73.7 million.
Callon intends to use the net proceeds from the offering to fund a portion of its 2011 capital budget and for general corporate purposes, including possible future acquisitions. Callon also intends to use $35 million of the net proceeds to redeem $31 million of its outstanding 13 percent Senior Notes due 2016 and pay the associated redemption premium.
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