Callon, Carrizo drill up to last minute of merger vote

Callon Petroleum and Carrizo Oil & Gas are drilling right up to the last minute of a controversial Nov. 14 merger vote between the two companies.

The proposed $3.2 billion merger faces investor opposition, but both companies stand behind the deal.

If the merger is approved, the combined company would become one of the top 20 drillers in Texas, a review of drilling permits shows.

In the meantime, Carrizo filed for 15 drilling permits over the past week with the Railroad Commission of Texas, the state agency that regulates the oil and gas industry.

Carrizo is seeking permission to drill eight horizontal wells in the Permian Basin and another seven in the Eagle Ford Shale.

Carrizo’s leases in Texas produced nearly 17 million barrels of crude oil, nearly 64 billion cubic feet of natural gas and more than 4 million barrels on condensate in 2018.

Focused on the western end of the Permian Basin, Callon has filed for 41 drilling permits so far this year — all of them in Howard and Ward counties.

The company’s leases in Texas produced nearly 15 million barrels of crude oil and 27.8 billion cubic feet of natural gas last year.

Permian Basin

Irving oil and gas company Pioneer Natural Resources is preparing to drill 20 horizontal wells targeting the Spraberry field in Midland and Reagan counties at total depths up to 10,325 feet. One of the top 5 drillers in Texas, Pioneer has filed for 322 drilling permits so far this year.

Eagle Ford Shale

Houston exploration and production company Marathon Oil is gearing up to drill 15 horizontal wells and one vertical well split between Atascosa, Gonzales and Karnes counties.

Thirteen of the horizontal wells target the Eagle Ford formation and two target the Austin Chalk. The vertical well is for a future saltwater disposal well targeting the Eagle Ford.

Haynesville Shale

Irving oil major Exxon Mobil is planning to drill a pair of horizontal wells on leases in Shelby and San Augustine counties that target the natural gas-rich Carthage field of the Haynesville geological layer at total depths up to 20,000 feet.

Barnett Shale

No drilling permits were filed for horizontal wells in North Texas this past week, but Granbury oil company Caribou Operating is drilling a vertical well on its Briscoe lease in Jack County.

Located five miles east of Antelope, the well targets the Caddo, Ellenburger and Pool formations at a depth of 6,500 feet.


Located just west of San Antonio, Medina County is emerging as a conventional drilling hot spot. Civron Petroleum Resources of Devine plans to drill a vertical well targeting the Fairfield field at a depth of 1,600 feet on its Young lease about 15 miles southeast of Hondo.

Brookshire-based Texas Secondary Oil Corp. plans to drill two vertical wells targeting the Taylor-Ina field on its Wilson P Unit 3 lease about 5 miles west of Biry.

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