Callon acquires interest in five offshore blocks, natural gas production facilities.NATCHEZ, Miss.--(BUSINESS WIRE)--June 4, 1996--Callon Petroleum Company (Nasdaq NMS See NetWare Management System. : CLNP/CLNPP) announced today it has acquired through a property exchange with Murphy Oil Corporation a 64 percent average working interest in Chandeleur Block 41 and Main Pass Blocks 159, 160, 161, and 163 in the Outer Continental Shelf In the federal United States, the Outer Continental Shelf (OCS) consists of the submerged lands, subsoil, and seabed, lying between the seaward extent of the States' jurisdiction and the seaward extent of Federal jurisdiction. (OCS OCS - Object Compatibility Standard ) 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 . Five wells on these blocks are producing 4.0 million cubic feet (1.7 million cubic feet to the acquired interest) of natural gas per day. In exchange for the offshore blocks, Callon assigned Murphy a working interest in the Magnolia Smackover Unit, Columbia County, Arkansas Columbia County is a county located in the U.S. state of Arkansas. As of 2000, the population was 25,603. The county seat is Magnolia. Columbia County was formed on December 17, 1852 and was named for the goddess Columbia, which is representative of America. . In a related transaction, Callon acquired the Main Pass Block 163 natural gas production facilities from Murphy for an undisclosed amount. These facilities process the production from the five OCS blocks assigned to Callon but are capable of handling 90 million cubic feet of natural gas per day. Fred L. Callon, president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , explains the acquisition "represents a significant opportunity in one of our key focus areas. The five acquired blocks are contiguous to Chandeleur Block 40, which the company acquired in December, 1995 and subsequently increased production from 5.5 million cubic feet to 12.5 million cubic feet of natural gas per day." Callon also says the company has acquired a 3-D seismic survey covering a portion of the five newly acquired blocks and plans additional seismic evaluation of the area during the second half of 1996. Drilling of prospects identified on the acreage could be initiated before the end of 1996. Callon Petroleum Company has been engaged in the acquisition, development, exploitation, exploration and operation of oil and gas properties in the Gulf Coast region since 1950. CONTACT: Callon Petroleum Company, Natchez John S. Weatherly, 800/451-1294 |
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