Home » NEWS » Energy » Callon Petroleum stock sale for acquisitions raises $122M

Callon Petroleum stock sale for acquisitions raises $122M

callon_petroleum_76810NATCHEZ — Callon Petroleum Co. has raised $122 million from a stock sale, with plans to use the proceeds to pay for new oil and gas properties it plans to buy in the Permian Basin of west Texas.

The Natchez-based company announced it has sold 14.38 million shares at $9 per share, paying about $7 million for an underwriters’ discount and expenses.

Callon 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.

BEFORE YOU GO…

… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.

If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.

Click for more info

About Megan Wright

One comment

Leave a Reply

Your email address will not be published. Required fields are marked *

*