By OGJ editors
HOUSTON, Mar. 9 -- Callon Petroleum Co., Natchez, Miss., has agreed to pay $190 million for BP Exploration & Production Co.'s 80% interest in Entrada oil and gas field in the Gulf of Mexico.
Callon already owns a 20% interest in this field. Hence, at the close of the transaction, expected in April, Callon will become operator and sole owner of the Entrada development, which lies on Garden Banks Blocks 738, 782, 785, 826, and 827.
The acquisition agreement stipulates that $40 million of the purchase price will be paid after certain undisclosed production milestones have been achieved.
The field's net proved reserves are pegged at 13.7 million bbl of oil and 68.1 bcf of gas. Its associated net probable reserves are placed at 13.7 million bbl of oil and 32.9 bcf of gas, representing a total proved plus probable net reserve base of about 44.2 million boe, Callon said.
