Callon Petroleum Company : Callon Petroleum Company Retains Advisor For Sale
Of Medusa And Receives Borrowing Base Increase
Natchez, MS (April 29, 2013) - Callon Petroleum Company (NYSE: CPE) ("Callon"
or the "Company") today announced that its Board of Directors has authorized
the marketing of the Company's 15% working interest in the Medusa deepwater
field and 10% interest in Medusa Spar LLC to prospective buyers.
"The past three and a half years have been truly transformational for our
organization and our asset base, firmly establishing Callon's operations in
the Permian Basin," commented Fred Callon, Chairman and CEO. "Our decision to
evaluate alternatives for our last remaining deepwater asset is the result of
a comprehensive review of our portfolio of identified drilling locations and
other prospective acreage over the last several months. Although Medusa is a
high-quality oil field with near-term drilling potential, we believe that our
Permian position presents a significant opportunity for increased capital
allocation to accelerate our drilling program and value creation for
shareholders. In addition, a potential sale transaction would provide us with
the financial strength and flexibility to pursue complementary Permian basin
acquisitions with an improved overall cost of capital."
Callon has engaged Jefferies LLC as its advisor to pursue the monetization of
its interest in the Medusa field and related assets.
In addition, the Company has received lender commitments to increase the
borrowing base under its $200 million revolving credit facility by 15% to $75
million. The next redetermination is scheduled to occur in the third quarter
following the preparation of mid-year reserves.
Callon Petroleum Company is engaged in the acquisition, development,
exploration and operation of oil and gas properties in Texas, Louisiana and
the offshore waters of the Gulf of Mexico.
This news release is posted on the company's website at www.callon.com and
will be archived there for subsequent review. It can be accessed from the
"News Releases" link on the top of the homepage.
It should be noted that this news release contains forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. These statements are identified by
the words "expects," "intends," "plans" and words of similar import, and
include statements regarding deepwater strategic plans, future capital
expenditures, future acquisitions, and the Company's drilling and other future
evaluation plans. These statements reflect the company's current views with
respect to future events and financial performance. No assurances can be
given, however, that these events will occur or that these projections will be
achieved, and actual results could differ materially from those projected as a
result of certain factors. Some of the factors which could affect our future
results and could cause results to differ materially from those expressed in
our forward-looking statements are changes in commodity prices, results of our
drilling program and other risks discussed in our filings with the Securities
and Exchange Commission, including our Annual Reports on Form 10-K, available
on our website or the SEC's website at www.sec.gov.
For further information contact
Rodger W. Smith, 1-800-451-1294
This announcement is distributed by Thomson Reuters on behalf of Thomson
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.
Source: Callon Petroleum Company via Thomson Reuters ONE
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