Quarterly report pursuant to Section 13 or 15(d)

Subsequent Events

Subsequent Events
3 Months Ended
Mar. 31, 2016
Subsequent Events [Abstract]  
Subsequent Events

Note 4 – Subsequent Events

On April 19, 2016, the Company entered into a  definitive purchase and sale agreement for the acquisition of 17,298 gross (14,089 net) acres primarily located in Howard County, Texas, in the central portion of the Midland Basin, for an aggregate purchase price of $220,000 in cash and 9,333,333 shares of common stock, subject to customary purchase price adjustments. The Company will be acquiring an 81% average working interest (61% average net revenue interest) in the acquisition.

Separately, on April 15, 2016, the Company entered into definitive purchase and sale and joint development agreements for the following transactions (collectively, the “AMI Transaction”) comprising total net cash consideration of $33,000, subject to customary purchase price adjustments. Key elements of the AMI Transaction include:


Formation of an area of mutual interest with TRP Energy, LLC (“TRP”) in western Reagan County, Texas, through the joint acquisition from a private party of 4,745 net acres (with a 55% share to Callon) north of the Garrison Draw field; and


Callon’s simultaneous sale of a 27.5% interest in the Garrison Draw field to TRP.

On April 25, 2016, the Company completed an underwritten public offering of 25,300,000 shares of its common stock for total estimated net proceeds (after the underwriter’s discounts and commissions and estimated offering expenses) of approximately $206,198. Proceeds from the offering are expected to be used to fund the pending transactions described above. If the pending transactions are not consummated, the Company intends to use the net proceeds of the offering to fund a portion of its exploration and development activities and for general corporate purposes, which may include leasehold interest and property acquisitions, repayment of indebtedness and working capital.

The Company plans to file separate financial statements and pro forma financial information, as required by SEC rules, in a Current Report on Form 8-K within the prescribed 75 day period following consummation of the pending transactions.