In early morning trade, shares of Callon are up 2%.
The acquisition includes approximately 28,000 net surface acres primarily adjacent to Callon's Spur operating area in Ward County.
In addition to the closing of this acquisition, Callon provided an update to its full year 2018 guidance to reflect the revised full year outlook.
The company raised its midpoint of annual 2018 production guidance by 1,500 BOE/d to 31.5 33.0 MBOE/d, from 29.5-32.0 MBOE/d, as the result of solid year-to-date performance in the Spur area and the impact of production from the acquisition.
In addition, Callon reiterated production target of over 40,000 BOE/d for the fourth quarter of 2018.
Meanwhile, the company also raised the midpoint of net operated horizontal wells placed on production by 9% due to incremental activity on the acquired properties, realized drilling and completion efficiencies, and a sustained increase in non-operated activities on both legacy and acquired properties.
Full year 2018 LOE guidance was reduced by 4% as incremental benefits from strategic infrastructure investments are realized.
Joe Gatto, President and Chief Executive Officer, commented, "We are excited to get to work on our new combined Spur footprint, and have already started the completion of a previously drilled Lower Wolfcamp A well and commenced drilling of an additional well on the acquired acreage. As previously discussed, this strategic "bolt-on" acquisition is highly contiguous to our legacy footprint and will offer significant advantages from extended lateral lengths and shared infrastructure."