Houston-based Callon Petroleum Co. on Friday completed its merger with crosstown independent Carrizo Oil & Gas Inc., which expands the Permian Basin footprint and adds a portfolio in the Eagle Ford Shale.
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Permian Basin pure-play Callon Petroleum Co. may have saved its takeover of Texas rival Carrizo Oil & Gas Inc. after reducing the offer of the all-stock deal, as a major shareholder now supports the new terms.
Permian Basin pure-play Callon Petroleum Co., which is in a battle with major shareholders over plans to expand its focus with the takeover of Carrizo Oil & Gas Inc., expects third quarter production to average 37,500-37,900 boe/d, 78% weighted to oil.
Houston-based Callon Petroleum Co. on Thursday went on the defense after a major shareholder slammed its planned takeover of Carrizo Oil & Gas Inc.
Houston independent Carrizo Oil & Gas Inc., which plies its trade in the Eagle Ford Shale and the Permian Basin’s Delaware, saw production climb 21% year/year in the first quarter, with better-than-expected efficiencies yielding well cost reductions across the portfolio.
Carrizo Oil & Gas Inc. plans to develop more large-scale multi-pad projects in the Eagle Ford Shale and perform additional multi-layer testing in the Permian Basin’s Delaware sub-basin in 2019 in expectations of delivering double-digit production growth.
Outperforming assets in the Permian Basin and Eagle Ford Shale led Carrizo Oil & Gas Inc. to increase 2018 production guidance to 60,200-60,500 boe/d from the previous range of 58,700-60,100 boe/d.
Houston-based Carrizo Oil & Gas Inc. has snapped up some of Devon Energy Corp.’s West Texas acreage in the Permian Basin for $215 million, even as it shifts some development south.
Despite a more than nine-fold increase in production in the Permian Basin’s Delaware sub-basin, Carrizo Oil & Gas Inc. said it plans to shift rigs and capital to the Eagle Ford Shale over the next 18 months to take advantage of superior returns in South Texas.
Carrizo Oil & Gas Inc. reported progress in its shift to multipad development in the Eagle Ford Shale and beat its production guidance for the first quarter, while also seeing strong initial production from a new well targeting part of the Wolfcamp formation in the Delaware sub-basin of the Permian.