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
Recently, several Eagle Ford operators have begun testing for the upper Eagle Ford. Halcón officials revealed in a quarterly conference call that they're sticking to their current game plan to drill in the "sweet spots" of their acreage.
“We [] have an upper section that has pay in it. We think we’re fracking into it from where we are, and we don’t really plan on changing what we’re doing. We’re in the sweet spot of the zone, and it’s repeatable across the entire acreage position. We’re not really interested to go after some other hit-or-miss-type objectives. We’re going to stay with what’s working well.”
El Halcón First Quarter 2014 Operations Update
Halcón's average production from its' El Halcón area during the first quarter of 2014 was 7,018 boe/d. That's an 843% increase compared to the same period last year. Company officials say current production is approximately 10,400 boe/d in the area.
“First quarter results exceeded expectations. We are firing on all cylinders from an operational standpoint and are excited about the opportunities that lie ahead.”
Halcón operated an average of four rigs in El Halcón during the first quarter and expects to operate an average of two to three rigs in the play for the remainder of the year. There are currently 57 Eagle Ford wells producing, 5 wells being completed or waiting on completion and 3 wells being drilled.
Read more at halconresources.com