Halcón Waiting for Crude Prices to Improve

Halcón Resources Reports 2016 Q3

Halcón Resources Reports 2016 Q3

Halcón Resources is still waiting for crude prices to improve before increasing Eagle Ford activity.

Related: Penn Virginia & Halcón Files Chapter 11

Halcón Resources announced its financial and operational report for the third quarter 2016. Executives commented that their primary focus for new activity is in the Williston Basin and Eagle Ford, but that they are also seeking other opportunities around the country.

This report comes just a few weeks after the company emerged from bankruptcy, where it was able to eliminate approximately $1.8 billion in debt.

For its Eagle Ford operations, Halcón reported production averaging 6,693 Boe/d. The company did not run any operated rigs in the region and no wells were put online. The company anticipates adding a rig back to the Eagle Ford area when oil prices improve.

In our East Texas Eagle Ford area, El Halcón we’re not running a rig today. We have recently been conversing and watching what other operators that are running rigs have been doing. There’s a fairly – I won’t say new but there’s a newish application of proven frac technology being used in the area. A higher profit concentrations in the 2,500 to 3,500 pound per linear foot range and slickwater fracs with only 20% or 30% of gel. Some of these results are very promising and we expect to actually change our outlook for this area dramatically in light of what we’re seeing so far.
— CEO, Fred Wilson

Halcón currently has working interests in approximately 80,000 net acres prospective for the Eagle Ford formation in East Texas, approximately 82% of which is HBP.  The Company currently operates 112 El Halcón wells.

Q3 Highlights include:

  • Production averaged 34,185 barrels of oil equivalent per day (Boe/d)
  • Production was comprised of 76% oil, 13% natural gas liquids and 11% natural gas
  • Shut-in approximately 7,000 Boe/d of net production during the third quarter due to low commodity prices.  This production was brought back online in early October 2016.
  • Total revenues of $102.5 million
  • Total operating costs per unit were $24.89 per Boe

Read more at halconresources.com