Halcon Plans Eagle Ford Development in Brazos County, TX

Halcon Eagle Ford Activity Map

Halcon is extending the Eagle Ford north into Brazos and Robertson counties in what the company has deemed the "El Halcon" prospect.

The company unveiled a 50,000 net acre position with plans to expand to 150,000 net acres in and around northern Brazos County.Early well results looking promising. The first two wells produced 859 boe/d and 694 boe/d, respectively. Both wells had a production stream that was 94% oil.

The first few wells have effective lateral lengths of 5,632 ft and were completed with 28 frac stages. Halcon estimates each well will recover 350,000-400,000 boe at a cost of $7-8 million.

“This management team knows a thing or two about the Eagle Ford Shale, and we intend to utilize our extensive knowledge of the formation to exploit this new opportunity to create shareholder value.”

— Floyd C. Wilson, CEO

Halcon's plans in the area are to run 1-3 rigs, with capital spending estimated at $100 million in 2013.

Woodbine Area Targeted And More Being Evaluated

Halcon Resources Eaglebine Map

Halcon also announced the company plans to focus its Woodbine efforts around 220,000 acres in Leon, Madison, Grimes, and Polk counties. The company has confidence in the limits of the Halliday Field and will begin to focus on operational efficiencies.

The results of a 3D seismic survey in Madison, Grimes, and Walker counties should be processed by the end of 2013. The data will allow the company to plan exploration in this less proven area.

Read more in the press release at halconresources.com

Penn Virginia Pearsall Well Test Drilling as Eagle Ford Reserves Surge

Penn Virginia Eagle Ford Acreage Map

Penn Virginia Corp grew Eagle Ford reserves 161% in 2012 from 10 mmboe to 26.1 mmboe. Reserves received a boost as the company's production grew to 6,900 boe/d in the fourth quarter of 2012, which represents growth of 600 boe/d over third quarter volumes of 6,300 boe/d.

Penn Virginia has plans to spend 88% or ~$335 million of its $360-400 million budget in the Eagle Ford.

H. Baird Whitehead, CEO, concluded, “Our steadily improving results have been driven primarily by our oily Eagle Ford Shale play where we significantly increased our acreage and drilling inventory during 2012. Building on this success, we plan to commit approximately 88 percent of estimated 2013 capital expenditures to the Eagle Ford Shale, drilling approximately 38 (28.8 net) wells and focusing on expanding our Eagle Ford Shale position.”

The company also expects estimated ultimate recovery (EUR) for Eagle Ford wells with full-length laterals in Gonzales County are approximately 400,000 boe and in Lavaca County EURs are approximately 500,000 boe. A recently completed Eagle Ford well, the Technik #1H in Lavaca County, was completed with 18 frac stages and tested at an initial rate of 1,136 b/d and 1.9 mmcfd on a 25/64th inch choke at flowing casing pressure of approximately 2,350 psi.

In January, PVA had 66 (55.1 net) Eagle Ford Shale wells on line, with one (0.9 net) well waiting on completion, two wells being drilled in the Eagle Ford Shale in Lavaca County and one horizontal test well being drilled in the Pearsall Shale in Gonzales County.

Currently, the company has approximately 40,000 gross ( 32,000 net) acres targeting the Eagle Ford Shale. In the fourth quarter, the company added approximately 2,000 net acres at a cost of approximately $4.9 million

Gonzales County Pearsall Well Being Tested

The company should begin completion of it's Pearsall test in Gonzales County late in the first quarter. The company completed a vertical well and a core test in 2012. Watch for well results as this will be one of the first publicized Pearsall wells in the area. EOG is testing other formations in the area, but has yet to comment on its exploration program publically.

Comstock Resource's Average Eagle Ford IP is 565 boe/d in 2012

Comstock Resource Eagle Ford Map

Comstock Resources Eagle Ford wells have come online at an average of 565 boe/d in the first half of 2012. The Donnell C #1H, the Carlson C #1H and the Hubberd #3 H in McMullen County were the best wells brought to production in the second quarter of 2012 and produced 938, 862 and 793 BOE per day, respectively.

The company's restricted choke program continues to prove it is beneficial. 29 wells have been producing more than 90 days under the restricted choke program and yielded average production rates of 679 boe/d IPs, 524 boe/d in the first 30 days, and 453 boe/d in the first 90 days. That's just a 33% decline in the initial 24-hour period and the average for the first 90 days.

Comstock estimates its has 277 potential drilling locations, with expected gross EURs of 500,000 boe per well yielding net resource potential of 78 million boe. The company operates a total of 35,000 gross (28,000 net) acres in the Eagle Ford and recently CRK & KKR signed an Eagle Ford JV Agreement.

Read the company's full Q2 press release at comstockresources.com