NATCHEZ, Miss., Sept. 8, 2014 /PRNewswire/ -- Callon Petroleum Company (NYSE: CPE) ("Callon" or the "Company") announced today the commencement of an underwritten public offering of 12,500,000 shares of its common stock, subject to market and other conditions. In connection with the offering, the Company has granted the underwriters a 30-day option to purchase up to an additional 1,875,000 shares of common stock.
Callon intends to use the net proceeds from this offering, together with borrowings under a planned new senior secured second lien term loan, to fund its previously announced pending acquisition of oil and gas properties in the Permian Basin (the "Pending Acquisition"). To the extent the Pending Acquisition is not consummated, the Company intends to use the net proceeds to fund a portion of its exploration and development activities and for general corporate purposes, which may include leasehold interest and property acquisitions, repayment of indebtedness and working capital.
Johnson Rice & Company L.L.C. and Scotiabank / Howard Weil are acting as joint book-running managers of the offering. The underwritten public offering will be made only by means of a prospectus supplement and accompanying base prospectus, copies of which may be obtained from Johnson Rice & Company L.L.C., Corporate Finance Department, 639 Loyola Avenue, Suite 2775, New Orleans, LA 70113, phone (504) 584-1231, or Scotiabank / Howard Weil, Attn: Prospectus Department, 250 Vesey Street, 24th Floor, New York, NY 10281, phone (212) 225-6854, email: email@example.com. When available, an electronic copy of the prospectus supplement and accompanying base prospectus may also be obtained at no charge at the Securities and Exchange Commission's (the "SEC") website at www.sec.gov.
The common stock will be issued and sold pursuant to an effective shelf registration statement on Form S-3 previously filed with the SEC.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. This offering may be made only by means of a prospectus supplement and accompanying base prospectus.
About Callon Petroleum Company
Callon is an independent energy company focused on the acquisition, development, exploration, and operation of oil and gas properties in the Permian Basin in West Texas.
Cautionary Statement Regarding Forward-Looking Statements
This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than historical facts, that address activities (including about the Pending Acquisition) that the Company assumes, plans, expects, believes, intends or anticipates (and other similar expressions) will, should or may occur in the future are forward-looking statements. The forward-looking statements are based on management's current beliefs, based on currently available information, as to the outcome and timing of future events. These forward-looking statements involve certain risks and uncertainties that could cause the results to differ materially from those expected by the Company's management. Information concerning these risks and other factors can be found in the Company's filings with the Securities and Exchange Commission, including its Annual Reports on Form 10-K, available on the Company's website or the SEC's website at www.sec.gov.
For further information contact:
Chief Financial Officer, Senior Vice President and Treasurer
SOURCE Callon Petroleum Company