Other |
3 Months Ended |
|---|---|
Mar. 31, 2018 | |
| Other [Abstract] | |
| Other |
Other
Operating leases
As of March 31, 2018 the Company had contracts for five horizontal drilling rigs. The contract terms, as amended through March 31, 2018, will end on various dates between July 2018 and February 2021. All of the drilling rig contracts provide for early termination, with penalties calculated at a reduced daily rate. In the event that Callon terminated all five drilling contracts as of May 2, 2018, the Company would owe a maximum of $23,682 over the remaining terms of the respective contracts, offset by any revenues earned for replacement work subsequently secured by the contractor. Management does not currently anticipate the early termination of any drilling rig contracts.
Other commitments
In March 2018, the Company entered into a contract for dedicated fracturing and pump down perforating crews, which will be effective on April 16, 2018. The term of the agreement is for two years from the effective date.
|