Callon Petroleum Company Closes $61.5 Million Sale of Mineral Interests
NATCHEZ, Miss.–(BUSINESS WIRE)–Callon Petroleum Company (NYSE: CPE) announced today that it has completed the sale of certain non-core, non-operated royalty and mineral interests for $61.5 million pursuant to a Purchase and Sale Agreement dated December 10, 2007. The buyer is Indigo Minerals LLC, a private company based in Houston, Texas.
These non-operated, onshore royalty and mineral interests represent less than 2% of Callon’s estimated current net proved reserves and are widely dispersed in 15 different states throughout the United States. Production, net to Callon, from the properties being sold is approximately 420 barrels of oil equivalent per day.
Proceeds from the sale will be used to strengthen the company’s balance sheet and provide additional liquidity for the development of Callon’s Gulf of Mexico deepwater fields.
Callon Petroleum Company is engaged in the acquisition, exploration, development and operation of oil and gas properties primarily offshore in the Gulf of Mexico. Over 80% of Callon’s oil and gas reserves are located in the deepwater Gulf of Mexico with approximately 55% consisting of crude oil.
Sam’s Notes
Now this looks like some good news for ownesr of CPE stock. With the company actively getting rid of non-oil interests to put money into its profitable oil interests I see good things ahead. Well, unless the price of oil somehow tanks. Even then oil is still an excellent investment.