Halcon Resources completed the sale of Eagle Ford acreage in Fayette and Gonzales counties for $144 million in the second quarter. The deal included 24,189 net acres, 1,811 boe/d of production, and approximately 3.6 million boe of reserves. The deal provides capital that will be used to expand the company's operations in its core areas (Bakken and El Halcon). The company plans to sell an additional 4,500 boe/d in 2013.
At the company's El Halcon prospect in Brazos County, four rigs began drilling 16 wells and four wells were brought to production during the quarter. The Eagle Ford wells had average initial production rates of 822 boe/d, which is lower than expected. Two of the wells had horizontal laterals that veered outside of the target zone. The two wells that were drilled in the optimal location produced an average of 1,016 boe/d.
Halcon will run 3-4 rigs in the El Halcon area in 2013 and is making progress toward expanding its position from 60,000 net acres to 100,000-150,000 net acres in the play. Watch for the company to further improve economics in the area as crews become more efficient. Drilling speed has already improved by 36% in most recent wells.
Halcon has 14 wells producing in the area with 9 wells waiting to be completed.
Read the full press release at halconresources.com