Primexx Energy Partners to buy assets in Delaware Basin


Aug 4 - Oil exploration company Primexx Energy Partners announced on Wednesday it would buy assets from Callon Petroleum Co in the Delaware Basin for $788 million as it seeks to expand its footprint in the westernmost Shalefield in the Permian.

The Permian basin in Texas and New Mexico is at the heart of the shale boom that has helped the United States become world's largest oil producer.

Callon will issue private money to Primexx for up to $440 million in cash and pay about 9.2 million of its shares. The stock closed at $37.91 on Tuesday.

It expects the deal to generate about 30% more free cash flow from the third quarter to 2023, Callon said in a statement.

Callon is slated to buy interest in leasehold assets as well as the related oil, gas and infrastructure assets of Primexx and its affiliates, which will increase its position in the Delaware Basin to 11,000 net acres.

In a separate release, Callon reported a second-quarter net loss of $11.7 million or $0.25 per diluted share, compared with a loss of $1.56 billion or $39.41 per share a year ago. Revenue rose about 23% to $394.1 million.

It added that it expects to produce between 95.5 & 97.5 million barrels of oil per day in the third quarter.