Dec 13 U.S. oil and gas producer Callon
Petroleum Co said its unit would pay $615 million to buy
acreage in the Southern Delaware Basin, spanning Texas and New
The assets being acquired from American Resource Development
LLC, American Resource Development Upstream LLC, and American
Resource Development Midstream LLC, produced 1,945 barrels of
oil equivalent per day in October 2016, the company
Callon said it plans to fund a part of the transaction with
proceeds from its offering of 34 million shares, which
represents about 21 percent of its outstanding shares.
There has been a slew of land acquisitions in West Texas as
producers scramble to gain or expand positions in the top U.S.
oil field, where drilling costs are low, in preparation for
recovering oil prices.
Shares of Callon fell about 2.9 percent to $16.9 in
after-hours trading. Callon's stock has nearly doubled in value
(Reporting by John Benny in Bengaluru)