Callan Power to Acquire Williston Basin Non-Operated Oil and Gas Assets with $48 Million Proved PV-10 and $83 Million 3P PV-10 from The Pfanenstiel Company, Significantly Expanding Energy Assets
Rhea-AI Summary
Callan JMB (NASDAQ:CJMB), through subsidiary Callan Power, entered a definitive agreement to acquire a non-operated working interest in producing oil and gas properties in the Williston Basin from The Pfanenstiel Company for $12.5 million in cash, plus reimbursement of certain in-process well costs. An independent reserve report by Pinnacle Energy Services estimates PV-10 attributable to the acquired interest at $48.1 million proved and $82.7 million total 3P (proved, probable, possible). The assets include interests in 377 gross producing wells, generating about 150 BOE/d of current net production, roughly 85% crude oil, plus 27 wells in process and about 3,000 net acres held by production. Net proved reserves total approximately 4.3 million BOE, about 79% oil. Callan JMB targets closing before October 1, 2026, and cites illustrative annualized net operating cash flow of $2.5 million at $75 WTI, implying a roughly 21% unlevered cash return on the purchase price from currently producing wells.
Positive
- $12.5 million purchase price for assets with $48.1 million proved PV-10
- Independent reserve report values total 3P PV-10 at $82.7 million
- Interests in 377 producing wells and 150 BOE/d current net production
- Net proved reserves of about 4.3 million BOE, ~79% crude oil
- Illustrative annualized net operating cash flow of $2.5 million at $75 WTI
- Approximately 3,000 net acres held by production with no lease-expiration exposure
Negative
- Upfront cash outlay of $12.5 million plus reimbursement of in-process well costs
- Illustrative cash flow and 21.2% unlevered return assume $75 WTI oil pricing
- Non-operated interest structure leaves field operations to third-party operators
News Explained
Funding for the proposed $12.5 million cash purchase remains undisclosed against $860,273 of cash reported on June 30.
Callan Power has entered into a definitive agreement, but the acquisition has not closed; if completed, Callan JMB would pay
Here, non-operated means Callan Power would participate in its share of production, development capital and cash flow while the operators retain responsibility for field operations, staffing and production facilities.
The package includes 27 gross wells that are permitted, drilling, awaiting completion or being completed, plus about 3,000 net acres held by production with no lease-expiration exposure, delay-rental obligations or drilling commitments.
The release does not identify how the
The stated target of closing before
Market reaction after Williston Basin asset acquisition: CJMB -15.23%
Following this news, CJMB has declined 15.23%, reflecting a significant negative market reaction. Argus tracked a peak move of +13.6% during the session. Our momentum scanner has triggered 18 alerts so far, indicating notable trading interest and price volatility. The stock is currently trading at $1.78. Trading volume is exceptionally heavy at 42.2x the average, suggesting significant selling pressure.
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Key Figures
Previous Acquisition Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Aug 25 | Oil asset acquisition | Positive | -4.9% | Andy Weigman was designated for Callan Power’s acquisitions role after the Reger Oil deal. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
The one tag-matched acquisition event produced a negative 24-hour reaction of -4.89%.
Key Terms
pv-10 financial
boe/d technical
unlevered cash return financial
working interest financial
proved developed reserves technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
Acquisition includes interests across 377 producing wells, approximately 150 BOE/day of current net production, and 27 additional wells in process, with
SPRING BRANCH, Texas, Aug. 27, 2026 (GLOBE NEWSWIRE) -- Callan JMB Inc. (NASDAQ: CJMB) (“Callan JMB” or the “Company”) a diversified company focused on logistics, emergency preparedness and critical infrastructure, today announced that, acting through its wholly owned subsidiary, Callan Power LLC, it has entered into a definitive Asset Purchase and Sale Agreement to acquire a non-operated working interest position in producing oil and gas properties in the Williston Basin of North Dakota and Montana from The Pfanenstiel Company, LLC for
Transaction Highlights
Significant increase in diversified, oil-producing assets: Interests across 377 gross producing wells in five North Dakota and Montana counties, limiting reliance on the performance of any single wellbore, generating approximately 150 BOE/d2 of current net production, approximately
Substantial upside in future drillable locations: Over 4 net wells on proved undeveloped acreage remain available for drilling and development.
Independently evaluated reserves: Estimated PV-10 of
Highly cash accretive: Approximately
Large acquisition of acreage: Approximately 3,000 net acres held by production with no lease-expiration exposure, delay-rental obligations, or drilling commitments.
Additional wells in process: Interests in 27 gross wells that are permitted, drilling, awaiting completion, or being completed, with the potential to contribute incremental production and cash flow as they are placed into production.
Non-operated structure: Callan Power will participate in its share of production, development capital, and cash flow without assuming direct responsibility for field operations, staffing, or production facilities.
“This acquisition will strengthen Callan Power’s energy footprint following the announced acquisition of Reger Oil assets and provide immediate exposure to producing energy assets with current cash flow, substantial diversification and additional development activity already underway,” said Wayne Williams, Chief Executive Officer of Callan JMB. “With a projected
Michael Reger, soon-to-be President of Callan Power and a longtime energy executive who founded Northern Oil and Gas, brings extensive experience with the non-operated upstream model that underpins the acquired asset portfolio.
“This is exactly the kind of asset we want to own,” said Michael Reger. “It is producing on day one, every acre is held by production, and the cash flow is spread across 377 wells operated by some of the leading operators in the Williston Basin rather than concentrated in a handful of wellbores. We are acquiring current production at a price that provides an attractive return based on the producing wells alone, with 27 additional wells currently in process and approximately ten years of future drilling inventory behind them. The non-operated strategy has been a central part of my energy career for two decades, and we believe this position provides a strong foundation from which to build.”
About Callan Power
Callan Power is Callan JMB’s wholly owned energy subsidiary, focused on energy development, resilience, and critical electrical infrastructure. Its oil and gas strategy centers on building a disciplined portfolio of non-operated interests in the Williston Basin through a repeatable acquisition model designed to provide diversified exposure across operators, wells, and development timing. Callan Power is also pursuing the domestic manufacturing of transformers and other critical electrical equipment to support grid reliability and strengthen U.S. energy infrastructure. By combining experienced leadership, rigorous land and acquisition capabilities, and a scalable operating structure, Callan Power is advancing Callan JMB’s broader expansion across the energy sector.
About Callan JMB Inc
Callan JMB Inc. (NASDAQ: CJMB) is a diversified logistics, preparedness, and critical-infrastructure company supporting healthcare organizations, government agencies, and commercial partners. The Company provides fulfillment, warehousing, cold-chain logistics, monitoring, regulatory compliance, and emergency-preparedness services designed to protect critical products, strengthen supply chains, and support continuity of operations. Through its portfolio of businesses, strategic partnerships, and acquisitions, Callan JMB is expanding its capabilities across healthcare and pharmaceutical logistics, domestic manufacturing, critical-infrastructure services, energy development, and the planned domestic manufacturing of transformers and other critical electrical equipment to support grid reliability and energy resilience. For more information, visit www.callanjmb.com.
Investor Contact
Valter Pinto, Managing Director
KCSA Strategic Communications
CallanJMB@kcsa.com
212.896.1254
Media Contact
Arian Hopkins
ahopkins@callanjmb.com
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements regarding the expected closing of the acquisition and the timing thereof; estimated production volumes, net acreage, well counts and reserves; estimated revenue, cash flow, operating costs, taxes and returns, including the illustrative figures set forth above; the expected timing, cost and productivity of the wells in process; commodity price assumptions; the Company’s ability to obtain financing for the acquisition; and the Company’s strategy, plans and objectives. These statements are based on management’s current expectations and assumptions and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially. Such risks include, without limitation: the failure to satisfy the conditions to closing, or the failure of the acquisition to close at all; volatility in oil, natural gas and natural gas liquids prices and in regional differentials; the Company’s status as a non-operator, under which it does not control the timing, cost or manner of drilling, completion or operations, including with respect to the 27 wells in process; risks that actual production, decline rates, operating costs and capital costs differ materially from the assumptions used; the inherent uncertainty of reserve estimates, including the risk that estimated reserves and PV-10 are not realized, that reserve estimates prepared using forward strip pricing differ materially from those prepared using SEC pricing, and that reserves attributable to undeveloped locations are never developed; title, environmental, regulatory, litigation and permitting risks, including pending litigation relating to certain of the acquired wellbores; the Company’s ability to obtain required financing and bonding on acceptable terms or at all; the Company’s limited operating history in the oil and gas industry and the risks of entering a new line of business; the risk that the acquisition is not accretive; and the other risk factors described in the Company’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K and subsequent periodic reports. Any forward-looking statement speaks only as of the date on which it is made, and the Company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. The illustrative cash flow figures presented above are not projections, forecasts or guidance of future results. They are arithmetic illustrations derived from the stated assumptions and are presented solely to describe the sensitivity of the acquired assets to commodity prices. They assume production is held flat and therefore do not reflect the natural production decline that will occur. Net operating cash flow is a non-GAAP financial measure and is not a substitute for, and should not be considered in isolation from, net income, operating income, cash flow from operating activities or any other measure calculated in accordance with generally accepted accounting principles. Because these amounts are forward-looking and depend on future commodity prices, volumes and costs, the Company is unable to reconcile them to the most directly comparable GAAP measure without unreasonable effort.
1 West Texas Intermediate
2 Barrels of Oil Equivalent per day
