NATCHEZ — Callon Petroleum Company is selling stock to pay for new oil and gas properties it plans to buy in the Permian Basin of west Texas.
The Natchez-based company will sell 12.5 million shares, giving the brokerages underwriting the sale the option to buy up to another 1.875 million shares.
At current prices, Callon could net more than $130 million from the stock sale. It also plans to borrow money to pay for the acquisitions, including a $213 million deal to buy rights to drill in 6,200 acres in the Permian Basin. The company says the acreage has 4 million barrels in proven reserves. Callon says the acquisition has sites for more than 400 horizontal wells.
Callon also is buying 577 acres in a separate deal.