Callon Petroleum Co., Houston, entered into an agreement to sell non-core, South Texas Eagle Ford shale acreage to an undisclosed buyer for cash proceeds of about $100 million, subject to customary closing adjustments. The deal is expected to close in November.
The properties include about 22,000 net acres in northern LaSalle and Frio counties. Net daily production from the properties was about 1,900 boe/d (66% oil) on average in the third quarter through Aug. 31, the company said in a release Oct. 6.
The transaction increases total cash proceeds from the 2021 divestiture program to over $140 million to date, within the guidance of $125-225 million for the year.
In the release, Callon noted closing of its acquisition of leasehold interests and related oil, gas, and infrastructure assets of Primexx Energy Partners and its affiliates in the Delaware basin, increasing Callon's Delaware basin position to over 110,000 net acres (OGJ Online, Aug. 4, 2021).
Guidance
Production in the third quarter has been above previous expectations due to strong well performance in the Delaware and Midland basins, the company said. The company raised its production guidance to 98,500-99,500 boe/d (64% oil) from 95,500-97,500 boe/d (64% oil). Operational capital for the quarter is currently estimated at $120-125 million.