Callon Petroleum Company Acquires Stake in Boomslang Deepwater Discovery

Strategic Insights -

Callon Petroleum Company, a leading energy firm, has expanded its interests in the Gulf Coast region with the acquisition of a significant stake in the Boomslang deepwater discovery on Ewing Bank Block 994. By purchasing Santos USA Corporation's 20 percent working interest, Callon now holds a 55 percent stake in the well, further solidifying its presence in the region. This acquisition follows an initial test well that logged approximately 185 net feet of pay in three separate zones, hinting at substantial reserves. With Murphy Exploration & Production Company as the operator, Callon and Murphy anticipate drilling a delineation well in mid-2000, which could significantly boost proved reserves.

Key Takeaways:

  • Callon Petroleum Company has acquired a 20 percent working interest in the Boomslang deepwater discovery from Santos USA Corporation for $7.3 million, increasing its total working interest in the well to 55 percent.
  • The initial test well drilled in the Boomslang prospect logged approximately 185 net feet of pay in three separate zones, indicating potential for significant reserves.
  • Murphy Exploration & Production Company, a subsidiary of Murphy Oil Corporation, operates the Boomslang well and holds a 45 percent working interest.
  • Callon and Murphy anticipate drilling a delineation well in mid-2000, which could substantially increase proved reserves associated with the discovery.
  • Callon also owns a 15 percent working interest in five contiguous blocks operated by Murphy.
  • Callon Petroleum Company has been engaged in exploration, development, acquisition, and operation of oil and gas properties in the Gulf Coast region since 1950.

Statistics:

  • Callon Petroleum Company's total working interest in the Boomslang well: 55 percent
  • Murphy Oil Corporation's working interest in the Boomslang well: 45 percent
  • Amount paid by Callon Petroleurm Company for Santos USA Corporation's 20 percent working interest: $7.3 million
  • Net feet of pay logged in the Boomslang prospect's initial test well: 185
  • Estimated proved reserves associated with the discovery (post-delineation well drilling): significant increase anticipated

Sources:

  • Business Wire, "Callon Petroleum Company Announces Acquisition of Stake in Boomslang Deepwater Discovery", December 2, 1999.
  • Callon Petroleum Company, News Release.
  • Securities Act of 1933 and Securities Exchange Act of 1934, as referenced in the news release.