Callion Petroleum Company: Permian Basin (Wolfberry) Update

By Andrea: http://oilshalegas.com

Callon Petroleum Company (CPE) recently provided an update on its onshore drilling activity in the Permian Basin:

Results in the company's Permian Basin Wolfberry development drilling program are exceeding expectations. As a result, earlier this month the company added a second drilling rig in the play. Ten wells have been drilled to date and the company plans to drill a total of 23 net wells by the end of 2010. Callon's net production has increased from 350 net Boe/d to 500 net Boe/d in September as a result of its development drilling activity. The company expects to exit the year at nearly 1,000 net Boe/d. In addition, Callon has increased its interest in the East Bloxom Development Area, located in Upton County, from an average 47% working interest to 100% working interest through a number of small acquisitions and a farm-ins. As a result, Callon controls the activity in three development areas encompassing 11 sections (6,656 net acres).

Callon currently has an inventory of 330 well locations in the Wolfberry oil play, 154 of which are 40-acre development locations. As operator and with no significant drilling obligations, the company can increase or decrease its pace of development as appropriate

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