2009-09-24-2009-09-10-2009-10-28

Acquired 8,200 acres in W. TX Permian Basin Wolfberry trend in Crockett, Ector, Midland, Upton counties, gaining 1.6 MMBOE proved, 475 BOE/d.

Seeking more oily onshore exposure, largely Gulf of Mexico-focused Callon Petroleum Co., Natchez, Miss., (NYSE: CPE) has closed its acquisition of interests in 23 producing wells in the Wolfberry trend of the Permian Basin in West Texas from Ambrose Energy I Ltd., a subsidiary of ExL Petroleum LP, Midland, Texas, for $16.25 million. The assets involve approximately 15,908 gross acres (8,202 net), of which 2,087 net acres are held by production, in Crockett, Ector, Midland and Upton counties. Callon estimates total proved reserves to be approximately 1.6 million barrels of oil equivalent. Current production is approximately 475 barrels of oil equivalent per day, primarily from the Wolfberry interval. Upside includes four uphole recompletion targets, 14 proved undeveloped locations and 142 nonproven locations on 40-acre spacing. "This is a first step in rebalancing Callon's assets between offshore and onshore properties," says Fred Callon, Callon chairman and CEO. "The Permian Basin Wolfberry play provides our company with repeatable, oil-focused growth opportunities that can be further improved over time and forms a competitive foundation for Callon's presence in the region." Callon will be operator of most of the acquired assets. The effective date is Sept. 1.