NATCHEZ, Miss. (AP) — Callon Petroleum Co. has raised $122 million from a stock sale, with plans to use the proceeds to pay for new oil and gas properties it plans to buy in the Permian Basin of west Texas.
The Natchez-based company announced Monday it has sold 14.38 million shares at $9 per share, paying about $7 million for an underwriters’ discount and expenses.
Callon also plans to borrow money to pay for the acquisitions, including a $213 million deal to buy rights to drill in 6,200 acres in the Permian Basin. The company says the acreage has 4 million barrels in proven reserves. Callon says the acquisition has sites for more than 400 horizontal wells.
Callon also is buying 577 acres in a separate deal.