Callon Petroleum Company completes sale of additional senior subordinated notes.NATCHEZ, Miss.--(BUSINESS WIRE)--Dec. 5, 1996--Callon Petroleum Company (Nasdaq NMS See NetWare Management System. : CLNP/CLNPP) announced today that Morgan Keegan & Company, Inc., the manager of its recent senior subordinated notes offering, has exercised its overallotment option overallotment option See greenshoe. to purchase $3.15 million of additional notes. The company's $21 million public offering of Senior Subordinated Notes due 2001 closed on Nov. 27, 1996. The offering was priced to yield 10 percent. Net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the offering (approximately $23.1 million) will be used to repay bank debt and for general corporate purposes, including the acquisition of oil and gas properties and exploratory and development drilling. In October and November, the company drilled three successful wells in its Shallow Miocene focus area, located in the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east at Chandeleur Block 40 and Main Pass Blocks 163 and 161. "These wells should be producing before year's end and may nearly double the company's natural gas production rates," explains John S. Callon, chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . Callon expects to drill at least six additional Shallow Miocene wells during 1997. In addition, the company is currently drilling a 15,000-foot OCS OCS - Object Compatibility Standard prospect and plans to commence another one before the end of December. Murphy Oil Corporation is the operator and Callon owns a 25 percent working interest. These are the first two of nine wells scheduled to be drilled by Murphy and Callon during 1996 and 1997. "If successful, these wells have the potential of adding significant natural gas reserves and could be major contributors to our long-term production and cash flow," Callon adds. Callon Petroleum Company has been engaged in the exploration, development, acquisition and operation of oil and gas properties in the Gulf Coast region since 1950. CONTACT: Callon Petroleum Company, Natchez John Weatherly, 800/451-1294 |
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