Callon is buying 29,000 net acres in the Permian's Delaware Basin from Cimarex for US$570million. This asset boasts flowing production of roughly 6,800 boe/d. The vast majority of acquired acreage is adjacent to Callon's Spur operating area in Ward County, Texas, with the rest in Loving and Winkler counties, Texas. Callon builds contiguous, held-by-production acreage in its core operating area while Cimarex sells what it considers to be a non-core asset in its portfolio. Callon's pro-forma Permian position spans over 86,000 net acres, putting the company on the same scale as Jagged Peak, Centennial, and RSP Permian.