Callon Petroleum Co said on Monday it will buy Carrizo Oil & Gas Inc in an all-stock deal valued at $3.2 billion to bolster its presence in the oil-rich Permian and Eagle Ford shale basins.

The combined company will have about 200,000 net acres in the two basins and produce a total of 102,300 barrels of oil equivalent per day.

Carrizo shareholders will receive 2.05 Callon shares for each share held, or about $13.12 per Carrizo share based on Callon's closing share price on July 12.

Based on Carrizo's outstanding shares, the equity value of the deal is $1.21 billion.

The deal represents a premium of about 25% to Carrizo's closing price on Friday.

Callon shareholders will own about 54% of the combined entity, with Carrizo shareholders owning the rest.

The deal, expected to close in the fourth quarter, will immediately add to earnings, cash flow and net asset value per share, the companies said.