Callon Petroleum sells interest in oil field

NATCHEZ — Callon Petroleum Co. says it will sell its share of an oil field to Royal Dutch Shell, PLC for $42 million.

The Mississippi company will sell its 11.25 percent interest in the Habanero field to Shell Offshore, planning to close the deal before year end.

The field, in 2,000 feet of water about 200 miles southeast of New Orleans, began production 2003.

Habanero represented 9 percent of Callon’s production in October. Shell Offshore operates the field and owns 55 percent. Murphy Oil holds the remaining 33.75 percent. The field produces close to 3,000 barrels of oil and 4.3 billion cubic feet of natural gas each day.

Callon says it will use the money to pay down debt, giving it flexibility to continue expanding in Texas’ Permian Basin.