East Texas Eagle Ford Update
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. Based on a review of 18 recent offset operator wells, the Company believes it can significantly improve EURs and well economics in the El Halcón area by applying an enhanced completion utilizing slickwater fracs and high intensity proppant loading to improve near wellbore fracturing of the target zone.
Halcón currently has approximately 80,000 net acres prospective for the Eagle Ford formation in
The table and chart below illustrate the Company's preliminary type curve expectations for wells completed with the enhanced completion technique.
|Projected El Halcón Type Curve Data Based on Enhanced Completions (Preliminary)|
|Lateral||Fluid||Proppant||D&C||Estimated EUR||IRR at||PV-10 at|
|Length (Ft)||Stages||Type||Amount||Cost ($MM)(1)||(Mboe)(2)||Strip(3)||Strip(2)(3) ($MM)|
|7,500||50||Slickwater||3000 - 3500 lbs/ft||$||8.0||706||39||%||$||4.8|
|(1) Includes all costs associated with drilling and completing a well (i.e. location, title, facilities, artificial lift, etc.).|
|(2) See "Forward Looking Statements" for important disclosures about EURs and PV-10.|
|(3) Based on NYMEX strip oil and gas prices as of |
A photo of the chart accompanying this release is available here http://www.globenewswire.com/NewsRoom/AttachmentNg/07184df4-9568-4b08-afa5-eb99aa9c1ce0
Q4 2016 Production Update and Preliminary 2017 Guidance
The Company is currently running one operated rig in the
Halcón expects fourth quarter 2016 production to average between 38,000 and 39,000 boe/d. Fourth quarter 2016 production has been negatively impacted by inclement weather in the
For 2017, the Company expects to spend approximately
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements that are not strictly historical statements constitute forward-looking statements and may often, but not always, be identified by the use of such words such as "expects", "believes", "intends", "anticipates", "plans", "estimates", "potential", "possible", or "probable" or statements that certain actions, events or results "may", "will", "should", or "could" be taken, occur or be achieved. Forward looking statements include gross drilling
locations, estimated drilling and completion costs, EURs, IRR and PV-10 for enhanced completion techniques, among others. This release uses the term "EUR" to describe estimates of potentially recoverable hydrocarbons that the
The disclosure in this press release of PV-10 value at strip prices of enhanced completions may also be considered a non-GAAP financial measure, which differs from the GAAP standardized measure of discounted future net cash flows. The standardized measure is calculated based estimates of year-end proved reserves using average first day of the month prices for the preceding twelve month period, reduced by estimated costs based on year-end economic conditions and estimated future income tax expenses. Because of these differences, there is no corresponding GAAP measure for the PV-10 value disclosed in this press release. Accordingly, it is not practicable for us to reconcile the PV-10 value disclosed herein to the GAAP standardized measure of discounted future net cash flows. PV-10 value is an important measure used by investors and independent oil and gas producers for evaluating relative significance of oil and natural gas properties.
Quentin HicksSVP, Finance & Investor Relations Halcón Resources (832) 538-0557
News Provided by Acquire Media