Halcón Plans to Reduce Rigs for 2015

Revised 2015 Budget is Slashed for El Halcón
El Halcon Eagle Ford Play Map

El Halcón Eagle Ford Play Map | Click to Enlarge

Halcón Resources will reduce its rig count in the El Halcón in East Texas from three to one, according to the company’s press release on January 8th. This is the second round of cuts for the Houston – based company in less than two months with executives citing the continued decline in oil prices as the reason for the move.

Halcón’s spending for 2015 is projected at between $375 – 425 million, representing a steep decline from 2014 numbers of $950 million. Even with these drastic cuts, the company anticipates that production in 2015 will increase to an average of 40,000-45,000 barrels per day. This is compared to 43,554 b/d in the third quarter of 2014.

Read here for more about El Halcón

Halcon CEO Floyd Wilson says that, “Our plan is to deploy capital to assets where results indicate EURs and initial production rates higher than our published type curves. We are comfortable with our current liquidity position and we expect our strong hedge portfolio to continue generating income well into 2016. Although we are significantly hedged, the continued weakness in crude oil prices, combined with elevated service costs, calls for conservative planning. We expect to see these costs come down dramatically during 2015.”

Read the full report at halconresources.com.

Eagle Ford companies are still hiring. For more information go to jobs.eaglefordshale.com


Halcón Resources Focused on El Halcón Area Sweet Spots

Current Production Approximately 10,400 boe/d in El Halcón
Halcon Resource's Eagle Ford Acreage Map

Halcon Resource’s Eagle Ford Acreage Map | Click to Enlarge

In its first quarter 2014 report, Halcón Resources made the claim that its entire East Texas El Halcón area is “de-risked and repeatable”. That may sound a little like a sales pitch, and likely, it is. Halcón Resources CEO, Floyd Wilson, has indicated within the last year that a sale of the company wouldn’t be out of the question. For the time being however, no definitive or official statements have been made by Halcón Resources, but it sounds like a nice bow is being wrapped around the company for a potential buyer.

During the first quarter, Halcón further strengthened its Eagle Ford position by divesting some of its’ non-core East Texas properties, and in a separate transaction in March 2014, the company acquired nine wells in El Halcón from Aresco LP. The purchase price of the wells was undisclosed.

[Read more…]

Aresco LP Sells Eagle Ford Wells to Halcón Resources

Deal Includes Nine Wells Located in Halcón's Core Operating Area
El Halcon Eagle Ford Play Map

El Halcon Eagle Ford Play Map | Click to Enlarge

Dallas-based Aresco-LP announced the sale of nine wells to Halcón Resources Corporation in March 2014 for an undisclosed amount.

The wells are located within Halcón’s ~100,000-acre “El Halcón” core operating area in Brazos and Madison Counties.




[Read more…]

Halcon Allocating More Capital To Its Brazos County Eagle Ford Development

Recent Eagle Ford Wells Producing More Than 1,000 boe/d (90+% oil)
Halcon Eagle Ford Activity Map

Halcon Eagle Ford Activity Map | Click to Enlarge

Halcon announced plans to spend $100 million targeting the Eagle Ford in Brazos County in 2013 just two months ago. Now, the company might spend double or triple that number.

The company didn’t say how much more capital would be allocated to the play, but said “capital is being reallocated to El Halcon from the Woodbine…” [Read more…]