Callon Petroleum Company (NYSE:CPE) Files An 8-K Completion of Acquisition or Disposition of AssetsItem 2.01. Completion of Acquisition or Disposition of Assets.
As previously disclosed, on May 23, 2018, Callon Petroleum Operating Company (“CPOC”), a wholly owned subsidiary of Callon Petroleum Company (“Callon” or the “Company”), entered into a purchase and sale agreement (the “Cimarex Purchase Agreement”) with Cimarex Energy Company and certain of its subsidiaries (collectively, the “Seller”) for the purchase of certain oil and gas producing properties and undeveloped acreage in the Delaware Basin (the “Cimarex Acquisition”).
On August 31, 2018, CPOC completed the Cimarex Acquisition for total cash consideration of $538.6 million, including customary purchase price adjustments in accordance with the Cimarex Purchase Agreement. The acquired properties include approximately 28,000 net surface acres in Callon’s Spur operating area in the Delaware Basin, over 90% of which are held by production, that are primarily adjacent to its existing position.
The foregoing description is qualified in its entirety by reference to the full text of the Cimarex Purchase Agreement, which has been filed as Exhibit 2.1 to the Company’s Current Report on Form 8-K filed on May 24, 2018, and is incorporated in this Report by reference.
Section7 – Regulation FD
Item 2.01. Regulation FD Disclosure.
On September 4, 2018, the Company issued a press release, attached as Exhibit 99.1, announcing the closing of the Cimarex Acquisition and updating 2018 guidance. A copy of the press release is furnished as Exhibit 99.1 hereto and is incorporated herein by reference.
The information set forth in the attached Exhibit 99.1 shall not be deemed “filed” for purposes of Section18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 2.01. Financial Statements and Exhibits
(a) Financial Statements of business Acquired
The Company will file the financial statements required by Item 2.01 (a) of Form 8-K by an amendment to this Current Report on Form 8-K no later than 71 days from the date this Current Report on Form 8-K is required to be filed.
(b) Pro Forma Financial Information
The Company will file the financial statements required by Item 2.01 (a) of Form 8-K by an amendment to this Current Report on Form 8-K no later than 71 days from the date this Current Report on Form 8-K is required to be filed.
(d) Exhibits
CALLON PETROLEUM CO ExhibitEX-99.1 2 exhibit991closingofcimarex.htm EXHIBIT 99.1 Exhibit Exhibit 99.1Callon Petroleum Company Announces Closing of Delaware Basin Acquisition and Updates 2018 GuidanceNATCHEZ,…To view the full exhibit click here
About Callon Petroleum Company (NYSE:CPE)
Callon Petroleum Company is an independent oil and natural gas company. The Company is engaged in the exploration, development, acquisition and production of oil and natural gas properties. It focuses on unconventional, onshore, oil and natural gas reserves in the Permian Basin in West Texas and the Midland Basin. Its asset base is concentrated in the Midland Basin located within the broader Permian Basin. Its operations are focused on horizontal drilling of several prospective intervals, including multiple levels of the Wolfcamp formation. It has drilled approximately 40 gross (over 27.1 net) horizontal, while completing approximately 30 gross (over 25.8 net) horizontal and over 1 gross (approximately 0.4 net) vertical wells. It owns leaseholds over 17,670 net acres in the Permian Basin. Its Southern Midland Basin area consists of fields located in Upton, Reagan and Crockett Counties, Texas. Its Central Midland Basin area encompasses Midland, Ector, Andrews and Martin Counties.
