Note 2 – Oil and Natural Gas Properties

Acquisitions

In the first quarter of 2014, the Company acquired 1,527 net acres in Upton and Reagan Counties, Texas, which are located in the southern portion of the Midland Basin near our existing core development fields, for an aggregate cash purchase price of $8,200. The properties bear a working interest of 100% and an average net revenue interest of 78%.

Acreage expiration

During the six months ended June 30, 2014, the Company transferred $12,940  from unevaluated properties to the full cost pool related to 8,028 net acres in the Northern Midland Basin that expired or are scheduled to expire in the near future and are no longer included in the Company’s exploration and development plans. As of June 30, 2014,  net of these expirations, Callon had a remaining net acreage position in the Northern Midland Basin of 9,480 acres which the Company is still evaluating for potential future exploration activities.