On January 6, 2014, Lone Star Value Management, LLC issued a press release announcing that it has urged the Board of Directors of Callon Petroleum Company to refrain from any further dilution of shareholder value through capital markets issuances, cease all acquisition activity outside the Permian Basin and commence a process to explore and evaluate all strategic alternatives available to the Company, including a sale of the Company, with a goal of maximizing shareholder value. In addition, Lone Star Value expressed its view that the Company is trading at a discount to its Permian Basin peers and the Company's stock has underperformed these peers. Further, Lone Star Value stated that it intends to file a preliminary proxy statement and accompanying proxy card with the Securities and Exchange Commission to be used to solicit votes for the election of its slate of 2 director nominees at the 2014 annual meeting of stockholders of the Company.