Callon Petroleum is the controlling lessee to our property in SEC 1, Block 1 Ward County after mergers with Carrizo and Cimarex. Are there owners in the MRF involved in the wells in Sec 1, Block 1 and surrounding acreage in Ward County south of the Gas PLANT? I am interested in any/all news relating to Callon and their wells, TRUE GRIT 1-H, DURHAM-EAST ALLOCATION WELL and SRO 551 Allocation B Well; the division order was signed in January 2020 and returned to Carrizo, nothing has transpired with the SRO since January. We were told the Callon VP would sign all Division Orders once all were returned? True Grit is not producing, Durham East is slowing down and SRO 551 (new) has not produced, it is idle.
Callon Petroleum is not in a good financial position at present, they were almost DE-listed on the NY Stock Exchange however they just did a negative stock split to increase value above the required one dollar per share value.
Your comments will be appreciated!
Thank you.
Mike
I own in True Grit 1-H too, but I know no more than you about the division orders.
I will say though, Callon is not in as bad of a spot financially as you might think. In my humble opinion, I think they are primed to be one of the biggest players in the future of Texas Energy. Their acquisition of Carrizo was at a very inopportune time, but they are primed to come out of this glut stronger than ever before.
Callons acquisition of Carrizo added $1.7 Billion in debt setting Callon’s total debt to $3.2 Billion. This is the reason their stock had been dropping well before the COVID panic. However, this debt is not set to mature until 2023. With the added cash flow from Carrizo, Callon should be more than capable to at least maintain their current state of operations until oil prices allow for more new drilling opportunity. They are now overseeing 200,000 acres, and a majority of that which they acquired from Carrizo is in the Eagle Ford which has some of the best returns on investment in the state.
Callon has an advantage over a lot of other operators being they are entirely inside the state of Texas. Goes without saying, but this allows Callon to keep all of their resources, focus, time, and money in Texas, operating some of the best acreage in the country.
I may be a tad too optimistic, and I might be biased because I made out like a bandit after getting some CPE stock @ 0.81, but I truly believe callon will make it through the glut and be a big time player for years to come.
Callon is indeed in a bad financial position. Whether they go bankrupt or not is just speculation, and even if they do go bankrupt, not much will change for the mineral owner. They’ll shift a few people around, maybe even change names (See Halcon/Battalion), but it’ll likely be the same company with the same poor communication. I’ve found Callon to be tough to work with in the past. From what I’ve seen, I think they suffer from a bit of high turnover in the division order department, and use some contract labor, so it’s tough to find somebody who knows what is going on. I wish I had some actual helpful advice, but all I can say is be persistent. Keep at them until they finally give you some real information. Best of luck.