Callon completes public offering, nets $65.7M

NATCHEZ — Callon Petroleum Company has closed its previously announced public offering of nine million shares of its common stock at a price to the public of $7.75 per share.

Callon also granted the underwriters a 30-day option to purchase up to an additional 1.35 million common shares on the same terms and conditions to cover over-allotments, if any.

Callon received net proceeds of approximately $65.7 million.

Callon said it 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.

These net proceeds do not include any proceeds associated with the underwriters’ over-allotment option.