From Texas-based Halcon Resources on Thursday:
Company Currently Producing ~35,000 Boe/d
New Company Record 3,317 Boe/d IP Rate in
Revenues for the second quarter of 2013 increased to
The Company realized 97% of the average
Halcón reported net income available to common stockholders, after assumed conversions, of
Halcón reported cash flow from operations before changes in working capital of
After adjusting for selected items (see Selected Operating Data table for additional information), lease operating expense per unit for the quarter decreased by 45% to
Liquidity and Capital Spending
Halcón received net proceeds from a perpetual convertible preferred stock offering of
During the second quarter of 2013, Halcón incurred capital costs of
In addition, on
As previously disclosed, a marketing process to divest approximately 4,500 Boe/d of conventional production is currently underway.
On a pro forma basis, after adjusting for the aforementioned acquisition and divestiture, Halcón is currently producing approximately 35,000 Boe/d, which represents a 25% increase compared to the Company's average net daily production for the second quarter.
Halcón operated an average of seven rigs in the
|Wells||2Q13 vs. 1Q13||2Q13 vs. 1Q13|
|Wells||Put Online||Avg. IP||Avg. IP Rate||Avg. 30 Day||Avg. 30 Day Rate|
|Spud||(POL)||Rate (Boe/d)||Variance||Rate (Boe/d)||Variance|
The Company also participated in 80 non-operated wells during the quarter with an average working interest of approximately 5%.
The ongoing implementation of drilling and completion modifications continues to yield positive results. The performance of wells that have been completed with modified completion techniques is currently above previously published type curve estimates.
Halcón's average initial production (IP) rate for the two most recently completed Bakken wells put online in the Fort Berthold area is greater than 3,000 Boe/d. A new Company record was recently set with a 3,317 Boe/d IP on a Bakken well in this area.
Halcón currently has approximately 150,000 net acres in the
There are currently 114 Bakken wells producing, 14 Bakken wells being completed or waiting on completion and 5 Bakken wells being drilled on Halcón's operated acreage in the
The Company operated an average of four rigs, spud 16 wells and brought 4 wells online in El Halcón during the quarter.
The average IP rate for the wells put online in the second quarter was 822 Boe/d. Two of the four wells brought online during the quarter were partially drilled out of the target zone, resulting in lower IP rates and a lower second quarter average IP rate. The average IP rate for the two wells put online in the quarter that were drilled in the target zone was 1,016 Boe/d. Halcón has determined that there is a limited sweet spot where the laterals for the wells drilled in this play need to be landed and the Company has adjusted its drilling plans accordingly.
Halcón is making progress towards its goal of leasing 100,000 to 150,000 net acres in El Halcón. The Company has redirected capital from the Woodbine play to El Halcón where it expects to operate an average of three to four rigs for the rest of 2013. As previously disclosed, Halcón expects to have data from a 330 square mile 3-D seismic survey spanning across portions of
Year-to-date, the Company has become a more efficient operator in El Halcón by decreasing the drilling days per well, drilling longer laterals and increasing the length of the frac stages while maintaining the total amount of proppant. The average number of feet drilled per day for the last five wells is 36% higher than the first five wells Halcón drilled in the play this year. Recently, Halcón set a Company record by reaching the target depth on a well in 10.75 days by drilling an average of 1,656 feet per day including a 9,157 foot lateral.
There are currently 14 Eagle Ford wells producing, 9 wells being completed or waiting on completion and 4 wells being drilled.
The Company operated an average of two rigs in in
It is important to note that the Kibler 1H (100% WI), located in
The process of delineating Halcón's
The Company currently has approximately 142,000 net acres leased or under contract. As previously disclosed, Halcón is focused on building an inventory of approved/permitted multi-well pads in preparation for a full scale development program and will target lateral lengths between 7,000 and 9,000 feet where possible.
The Company's midstream subsidiary, Halcón Field Services (HFS), has entered into an exclusive arrangement with the
In addition, HFS continues to engage in discussions for a potential joint venture to develop a high pressure, rich gas gathering system and scaled cryogenic gas processing for Halcón's oil and gas assets in
The following guidance incorporates the aforementioned divestment of certain properties in
|Operating Costs and Expenses ($/Boe)|
|Drilling & Completion Capex - Excluding A&D ($ in billions) (1)||$1.375|
|(1) Excludes discretionary capital related to leasehold acquisitions, infrastructure and other.|
Note: Guidance is forward-looking information that is subject to a number of risks and uncertainties, many of which are beyond the Company's control. Guidance has not been adjusted to include the potential impact of the planned divestiture of 4,500 Boe/d of conventional production.
Chesapeake Energy Corp,the Oklahoma-based firm is the No. 1 driller in Ohio.
Rig Count Interactive Map by Baker Hughes, an energy services company.
Shale Sheet Fracking, a Youngstown Vindicator blog.
The Ohio Environmental Council, a statewide eco-group based in Columbus.
Earthjustice, a national eco-group.
People's Oil and Gas Collaborative-Ohio, a grass-roots group in Northeast Ohio.
Concerned Citizens of Medina County, a grass-roots group.
No Frack Ohio, a Columbus-based grass-roots group.
Fracking: Gas Drilling's Environmental Threat by ProPublica, an online journalism site.
Pipeline, blog from Pittsburgh Post-Gazette on Marcellus shale drilling.
Allegheny Front, environmental public radio for Western Pennsylvania.