Would need to see the sale agreement but on the outside it seems that 26% of our PB leases are off loaded to Callon Petroleum, the big questions are on what terms. Will we keep any of the existing wells ( Are all our existing wells on this lease?),is this a partnership in any way or are we simply selling a portion of our leases outright. It does seem to match up with the ann regarding a 3-4 well carry($12m), however this seems to imply that we will still be going it alone. Personally l was hoping for a partnership in some form so maybe there is more to this story.
Will be intresting to see everyones opinions, but from the research l have done on Callon it does seem to suggest that they are very intrested in the Cline.
Jun 21, 2012 Acreage Acquisition Updates
On June 8, 2012, Callon signed a purchase and sale agreement to acquire 2,319 gross (1,762 net) acres in southern Reagan County, TX for a total purchase price of $12 million. Callon intends to initiate a horizontal drilling program focused on the Wolfcamp B shale and currently estimates that the leasehold acquisition will add 19 horizontal Wolfcamp B drilling locations. The pending acquisition also includes seven vertical Sprayberry wells with estimated net proved developed reserves of 215 thousand barrels of oil equivalent. The transaction is expected to close on or before July 10, 2012, subject to customary closing conditions.
GGP Price at posting:
1.2¢ Sentiment: Buy Disclosure: Held
