Callon Petroleum revises production guidance to 22,450-22,600 BOE/D for Q3
Callon Petroleum announced a revised production guidance range of 22,450 to 22,600 barrels of oil equivalent per day for the third quarter of 2017, reduced from a previous guidance range of 23,000 to 25,000 Boe/d. Prior guidance of 77% oil production and estimates for expenses and operational capital expenditures for the third quarter are unchanged. The revision is related in part to a heightened level of non-productive time during the completion of wells in the quarter caused by an approximate 20% reduction in average efficiency across all vendors involved with completion operations compared to the second quarter of 2017. As a result, cycle times for wells were extended and associated production contributions were delayed. Moreover, these increased cycle times also lengthened the amount of production downtime from offsetting wells that were shut-in for the completion operation and, hence, delayed the timing of returning wells to production. Over 2,500 net Boe/d of established production from offsetting wells was affected by completion operations in the quarter. The company also revised its full-year 2017 production guidance to a range of 22,000 to 23,000 Boe/d.