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Permian Basin Darling Callon Bucks to Investor Pressure; Expands Board

Share Print Bookmark    |    Tuesday,March 11,2014

Callon Petroleum has reached an agreement with Lone Star Value Management, LLC, Callon has agreed to expand the size of the Company's Board of Directors from six to eight directors and to designate two new independent directors – Matthew Regis Bob, Managing Member of MB Exploration, and James M. Trimble, Chief Executive Officer and President of PDC Energy – to fill the newly-created directorships, effective March 14, 2014. Messrs.

Related: Activist Investor Lone Star Value Advises Callon to Sell

Fred Callon, Chairman and CEO, said, "Callon has long benefited from a strong Board that comprises industry leaders who have diverse expertise relevant to Callon's strategies for growth and value creation.  We look forward to additional contributions from Matt and Jim.  We are pleased with the progress we are making as we continue to execute on the next phase of our growth strategy as a pure-play, onshore operator in the Permian Basin."

Jeffrey E. Eberwein, founder and Chief Executive Officer of Lone Star Value, commented: "Callon has a premier asset portfolio with bright prospects for continued growth and value creation.  I believe that the announced changes to Callon's board composition will reduce the valuation discount of Callon's stock and add additional expertise."

Lone Star Value Management, LLC is the same company that proposed that Callon sell the company back in January.  Read the full proposal here.

Proposal Summary 

Lone Star Value accused Callon Petroleum’s management of prematurely rebuffing overtures from potential acquirers. Lone Star Value recently launched an activist campaign seeking the election of its two candidates to the Board of Directors of Callon Petroleum at its upcoming 2014 annual meeting.

To learn more about Callon's operations in the Permian Midland Basin, click here.