Halcón Resources Announces Production Results on its First Operated Well in the Hackberry Draw Prospect and Provides an Upda...
September 06 2017 - 7:30AM
Halcón Resources Corporation (NYSE:HK) (“Halcón” or the “Company”)
today provided early production data on its first operated well in
the Hackberry Draw Prospect and provided an update on other Company
activities.
Halcón’s Balbo Adrianna West 1H well on the northern portion of
its Hackberry Draw area in Pecos County was put online in late July
2017. This well was completed with an effective lateral
length of 9,698 feet targeting the Wolfcamp B interval. The
well’s current peak 10 and 20 day average rates are 1,278 and 1,149
boe/d, respectively comprised of ~74% oil (2 stream). The
well reached a peak 24 hour IP rate of 1,415 boe/d on August 26,
2017. The well is currently producing ~1,260 boe/d and the 20
day average IP rate continues to increase. This well’s
performance to date is in line or slightly above Halcón’s type
curve EUR estimates for a Wolfcamp B well on its Hackberry Draw
area of 1.3 MMboe for a 10,000 foot lateral.
Separately, Halcón’s first operated well (CRMWD 79-1H) on its
Monument Draw area in Ward County continues to produce better than
the Company’s expectations. The ~5,200 foot lateral well has
been online for over 100 days and has maintained daily production
in excess of 1,000 boe/d.
The Company recently changed frac providers which has caused
some delays on its remaining 2017 completion schedule. The
new frac fleet will recommence completion operations on a two well
pad in the Hackberry Draw area (Ethel Jesper East 1H and the
Berkley State East 2H) next week with these wells expected to be
put online in early October 2017. The completion crew will
work continuously for the remainder of 2017 in both the Hackberry
Draw and Monument Draw areas with an additional 6 to 7 wells
expected to be put online before December 31, 2017. As a
result of this delayed completion schedule, Halcón has revised its
fourth quarter 2017 production guidance range to 8,000 to 12,000
boe/d.
As previously announced, the Company has entered into an
agreement to sell its operated Williston Basin assets for $1.4
billion in cash, subject to certain adjustments. The closing
date is scheduled for September 7, 2017. Halcón continues to
evaluate the potential divestiture of its non-operated Williston
Basin assets.
The Company plans to release additional operational updates
along with its third quarter 2017 financial results in early
November 2017.
About Halcón Resources
Halcón Resources Corporation is an independent energy company
engaged in the acquisition, production, exploration and development
of onshore oil and natural gas properties in the United States.
For more information contact Quentin Hicks, Senior Vice
President of Finance & Investor Relations, at 832-538-0557 or
qhicks@halconresources.com.
Forward-Looking Statements
This release may contain 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. Statements that are not strictly historical
statements constitute forward-looking statements and may
often, but not always, be identified by the use of such
words such as "expects", "believes", "intends", "anticipates",
"plans", "estimates", "potential", "possible", or "probable"
or statements that certain actions, events or results "may",
"will", "should", or "could" be taken, occur or be achieved.
Forward-looking statements are based on current beliefs
and expectations and involve certain assumptions or
estimates that involve various risks and uncertainties
that could cause actual results to differ materially from
those reflected in the statements. These risks include, but are not
limited to, those set forth in the Company's Annual Report on Form
10-K for the fiscal year ended December 31, 2016 and other filings
submitted by the Company to the U.S. Securities and Exchange
Commission (SEC), copies of which may be obtained from the
SEC's website at www.sec.gov or through the Company's
website at www.halconresources.com. Readers should not
place undue reliance on any such forward-looking statements, which
are made only as of the date hereof. The Company has no
duty, and assumes no obligation, to update forward-looking
statements as a result of new information, future events
or changes in the Company's expectations.
We may use the terms “resource potential” and “EUR” in this
press release to describe estimates of potentially recoverable
hydrocarbons that the SEC rules prohibit from being included in
filings with the SEC. These are based on the Company’s
internal estimates of hydrocarbon quantities that may be
potentially discovered through exploratory drilling or recovered
with additional drilling or recovery techniques. These
quantities do not constitute “reserves” within the meaning of the
Society of Petroleum Engineer’s Petroleum Resource Management
System or SEC rules and are subject to substantially greater
uncertainties relating to recovery than reserves. “EUR,” or
Estimated Ultimate Recovery, refers to our management’s internal
estimates based on per well hydrocarbon quantities that may be
potentially recovered from a hypothetical future well completed as
a producer in the area. For areas where the Company has no or very
limited operating history, EURs are based on publicly available
information relating to operations of producers operating in such
areas. For areas where the Company has sufficient operating
data to make its own estimates, EURs are based on internal
estimates by the Company’s management and reserve engineers.
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