Texas-West

Callon Petroleum Co., Natchez, Miss., added a second drilling rig earlier this month in the Permian Basin Wolfberry development program, where results exceeded expectations.

Sept. 23, 2010

By OGJ editors
HOUSTON, Sept. 23 – Callon Petroleum Co., Natchez, Miss., added a second drilling rig earlier this month in the Permian Basin Wolfberry development program, where results exceeded expectations.

Ten wells have been drilled, and the company plans to drill a total of 23 net wells by the end of 2010. Callon expects to exit the year at 1,000 net b/d of oil equivalent. Its net production has increased to 500 net boe/d in September from 350 net boe/d.

Callon also hiked its working interest in the East Bloxom development area in Upton County to 100% from an average 47% by a number of small acquisitions and farm-ins. As a result, Callon controls the activity in three development areas totaling 6,656 net acres.

Callon’s Wolfberry inventory totals 330 well locations, 154 of which are 40-acre development locations. As operator and with no significant drilling obligations, the company can increase or decrease its pace of development as appropriate.