Callon to get $150 million non-recourse loan from CIECO

By Sara Rosenberg

New York, Feb. 13 - Callon Petroleum Co. is planning on getting a $150 million non-recourse loan from CIECO Energy Ltd., according to an 8-K filed with the Securities and Exchange Commission Wednesday.

The loan is being done in connection with CIECO's acquisition of a 50% working interest in the Entrada Field from Callon.

Proceeds will be used to fund Callon's 50% share of the estimated $300 million future development costs in the Entrada Field.

The loan is expected to be priced at Libor plus 375 basis points and mature within five years of first production from the property.

Callon is Natchez, Miss.-based company engaged in the exploration, development, acquisition and operation of oil and gas properties.

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