CPE

[dan_s]

NATCHEZ, Miss., Oct. 8, 2014 /PRNewswire/ -- Callon Petroleum Company (NYSE: CPE) ("Callon" or the "Company") today announced the closing of its previously announced acquisition of 6,230 gross (3,862 net) surface acres and associated production located in Midland, Andrews, Martin and Ector Counties, Texas. Including estimated purchase price adjustments, total net consideration paid for the acquisition was approximately $205 million. The properties have historically been developed with vertical wells, although horizontal activity has recently been progressed. Two horizontal Wolfcamp B wells have been drilled since June 2014 with one, the Casselman 8-1H, currently flowing back and another, the Bohannon 24-2H, in the process of completion. In addition, the Casselman 40-4H, a horizontal Lower Spraberry well, is in the process of drilling.

[If you go to Callon's website and look at the recent presentation, you will see that this new acreage block is very close to where Diamondback Energy (FANG) has some very good wells. - dan]

Fred Callon, Chairman and CEO commented, "This strategic acquisition adds critical mass in an area of the Midland Basin with established development of multiple horizontal zones, where we have also demonstrated our capabilities as an operator in adjacent fields. Importantly, we believe that our recently completed equity and debt market transactions, combined with an increased borrowing base, provide a solid base of long-term capital and liquidity to execute our operational plans in 2015 and beyond."

In conjunction with the acquisition, the Company recently completed an equity offering for $129 million in gross proceeds and a new term loan for $300 million in gross proceeds. Pro forma for the completion of the acquisition and closing of the financings, the Company estimates its total liquidity position to be approximately $242 million as of September 30, 2014, including availability under an amended borrowing base level of $250 million. The new term loan, which replaced the Company's previous $125 million term loan facility, is secured by a second lien on assets pledged under the Company's revolving credit facility and bears interest on Eurodollar advances at a rate of LIBOR plus 7.50% per annum. The maturity date of the term loan facility is October 8, 2021 and is prepayable at a declining premium, beginning at 102% after one year. Additional information regarding the new term loan will be filed on a Form 8-K with the Securities and Exchange Commission.

About Callon Petroleum Company

Callon is an independent energy company focused on the acquisition, development, exploration, and operation of oil and gas properties in the Permian Basin in West Texas.

[wilmawatts]

This one looks really really good to me. Great properties in a great location, lots of stuff derisked already.

That said if I like it probably time for others to go short, seems everything I have bought lately has been hammered relentlessly

[Lemonhawk]

.....has been hammered relentlessly

Ditto...

[setliff]

Callon Petroleum Could Be Worth A Lot More Than Wall Street Is Giving It Credit For

Oct. 13, 2014 4:29 AM ET | 1 comment | About: Callon Petroleum Co. (CPE), Includes: ATHL, ECA
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. (More...)

Summary
•Based on Encana's recent purchase, Callon would be worth over twice its current value.
•Callon Petroleum has built up a 18,000 net acre position in the core part of the Midland Basin.
•Lower oil prices could hamper Callon's ability to add additional rigs to its Permian operations.
•Production growth and lower operating costs per BOE will help Callon grow into a much more reasonable valuation.

http://seekingalpha.com/article/2556495 ... r?uprof=46