Callon Petroleum Company (NYSE: CPE) today reported results of operations for both the three and 12-month periods ended December 31, 2010.
Highlights for 2010 include:
- Increased proved reserves to 13.6 million barrels of oil equivalent as of December 31, 2010, a 41% increase, and the PV-10 value, a non-GAAP financial measure, using SEC pricing, increased by 50% to $206 million. (See “Non-GAAP Financial Measures” for a reconciliation of PV-10 value to the standardized measure value of $198.9 million.)
- Grew the percentage of proved reserves associated with onshore assets to 50%, up from 0% at year-end 2008. Proved reserves at December 31, 2010 are 49% proved, developed/producing and proved/developed/non-producing, and are 60% crude oil and 40% natural gas.
- Drilled 20 gross oil wells in the Permian Basin of West Texas, 11 were completed and producing at year-end and 9 were awaiting fracture stimulation, which increased our Permian net production to 550 barrels of oil equivalent per day at the end of 2010 – a 69% increase over the 2009 year-end production rate.
- Drilled and completed the company’s first well in the Haynesville Shale play in northern Louisiana. This successful well now holds all of Callon’s acreage in the play by production, with six additional drilling locations, four net wells, in inventory awaiting more favorable natural gas prices.
“Continued execution of the business strategy we adopted in late 2009 made 2010 a transformational year for Callon Petroleum Company,” Fred Callon, Chairman and Chief Executive Officer explains. “In the Permian Basin, we’ve instituted a two-rig continuous drilling program with a goal of drilling 43 net wells during 2011, and have recently signed a hydraulic fracturing contract which should mitigate completion delays and improve our ability to execute our plan. In less than two years, our new business strategy including property acquisitions and their development have resulted in the rapid growth of onshore oil and gas reserves and production. As a result of the investment community’s recognition of our progress, the price of our common shares increased 295% during 2010 from January 1 to December 31. In February of 2011, we approached the equity market to raise additional growth capital, and were encouraged by the positive response received by our equity offering. Our 2010 achievements create a strong foundation for continued operational success in 2011.”
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