NATCHEZ, Mississippi --Callon Petroleum Co. has agreed to purchase BP's 80% working interest in the Entrada field for $190 million in cash.
The purchased interests include Garden Banks blocks 738, 782, 785, 826, and 827. Following completion of the acquisition, Callon will become operator and 100% owner of the field.
The company estimates net proved reserves from the acquired assets are 13.7 MMbbl of oil and 68.1 bcf of natural gas. In addition, associated net probable reserves are estimated at 13.7 MMbbl of oil and 32.9 bcf of natural gas.
"We are very excited about the opportunity this presents for Callon Petroleum Co. to manage the development of the Entrada field and to significantly increase the company's production once the field is brought online," says Fred Callon, chairman and CEO.
The acquisition is expected to close by the end of April.