NATCHEZ, Mississippi -- Callon Petroleum has signed a purchase and sale agreement with CIECO Energy, a subsidiary of Tokyo-based ITOCHU Corp. Under the agreement, Callon will sell CIECO a 50% working interest in the Entrada field, located in the deepwater region of the Gulf of Mexico, for $175 million. Callon will retain a 50% working interest and continue as operator of the field.
"This agreement provides for a fully-funded development plan for the Entrada field and represents the final major step in meeting our goal of achieving initial production from the field in 1Q 2009," says Fred Callon, Callon's Chairman and CEO. "Since increasing our working interest ownership in the Entrada field to 100% in April 2007, our focus has been on meeting critical project milestones."