Halcón to Resume Eagle Ford Drilling
Halcón Resources Corporation announced this week it will resume its Eagle Ford drilling program in early 2017.
Related: Halcón Waiting for Crude Prices to Improve
Halcón maintains its El Halcón in the Eagle Ford, which is comprised of 80,000 net acres in Brazos and Burleson counties. Low crude prices have slowed growth in the area and the company has not operated a drilling rig in El Halcón for almost a year.
In November, the company announced it was still waiting for crude prices to improve before increasing Eagle Ford activity, but after reviewing results of 18 recent offset operator wells, the company has decided to resume drilling. The company plans to drill five wells in El Halcón in the first half of 2017.
“Due to low commodity prices, the Company has not operated a rig on its El Halcón acreage in nearly a year. Halcón’s decision to resume drilling in this area is driven by the recent improvement in oil prices, in addition to the Company’s technical review of recent offset operator activity in the play.””
Q4 and beyond:
- Q4: Company operated rig in the Fort Berthold Indian Reservation area of the Williston Basin and plans to continue to keep this rig in the FBIR area through 2017.
- Q4 production should average between 38,000 and 39,000 boe/d
- 2017: Company expects to spend approximately $200 MM on drilling and completion costs
- 2017: Company expects to generate 39,000 to 41,000 boe/d of production
- 2017: Company expects to be cash flow neutral in 2017
Earlier this fall, Halcón emerged from bankruptcy, where it was able to eliminate approximately $1.8 billion in debt.