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Subsequent Events
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12 Months Ended |
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Dec. 31, 2011
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| Subsequent Events [Abstract] | |
| Subsequent Events |
Subsequent Events
Subsequent to December 31, 2011, Callon significantly expanded its Permian Basin acreage position by 152% to approximately
24,010 net acres from the approximately 9,540 net acres at year-end 2011. During February of 2012, the Company acquired approximately 16,020 gross (approximately 14,470 net) acres in the northern portion of the Midland basin. The purchase price was funded from existing cash balances. The northern portion of the Midland basin has had limited drilling activity compared with the southern portion of the basin (where our current production is located), making drilling activities in this area much more high risk. The Company has an average 90% working interest across the contiguous acreage positions and is the operator, and it expects to initiate a 3-D seismic survey in the first half of 2012 and subsequently commence exploratory drilling on the acreage in the third quarter of 2012.
In February 2012, the Company announced plans to commence a horizontal drilling program at its East Bloxom Field targeting the Wolfcamp B shale during the second quarter of 2012. This drilling program was based on the Company's ongoing evaluation of its acreage position in the East Bloxom Field, located in Upton county, Texas, and recent industry drilling results in northern Upton County and western Reagan County, Texas. To support its horizontal drilling program, Callon recently contracted a new-generation drilling rig for a term of two years that is expected to be delivered in April 2012 at a cost of approximately $9.1 million per full year.
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