Halcon Resources Provides Utica/Point Pleasant Operational Update HOUSTON, May 23, 2013 (GLOBE NEWSWIRE) -- Halcón Resources Corporation (NYSE:HK) ("Halcón" or the "Company") today provided an operational update specific to its acreage in Northeast Ohio and Northwest Pennsylvania, the Company's core area in the Utica/Point Pleasant play.
The Phillips 1H (90% WI), located in Mercer County, Pennsylvania, tested at a peak rate of 120 barrels of condensate per day and 2.5 million cubic feet of per day of 1,250 BTU natural gas. Based on composition analysis and assuming full ethane recovery, Halcón estimates that the well would produce an additional 240 barrels of NGLs per day for a total peak production rate of 730 Boe/d. This well was drilled to a total measured depth of 12,411 feet, had an effective lateral length of 5,360 feet and was completed with 20 frac stages. Production from the Phillips 1H is currently being placed into a sales pipeline, and the Company expects the well to continue to clean up over time.
The Allam 1H (100% WI), located in Venango County, Pennsylvania, is currently shut-in awaiting infrastructure, and tested at a peak rate of 6.6 million cubic feet of per day of 1,210 BTU natural gas and 22 barrels of condensate per day. Based on composition analysis and assuming full ethane recovery, Halcón estimates that the well would produce an additional 728 barrels of NGLs per day for a total peak production rate of 1,652 Boe/d. This well was drilled to a total measured depth of 14,300 feet, had an effective lateral length of 5,580 feet and was completed with 21 frac stages. The Allam 1H was still recovering load water at the end of the flow test and is expected to continue to clean up once it is opened to pipeline sales.
The Brugler 1H (90% WI), located in Trumbull County, Ohio, started flowing the frac load back on May 13, 2013. Expectations are to tie this well into a sales pipeline in early July 2013. This well was drilled to a total measured depth of 10,959 feet, had an effective lateral length of 3,826 feet and was completed with 16 frac stages. The Yoder 2H (90% WI), located in Mercer County, Pennsylvania, is currently resting and the Company plans to begin testing this well on May 30, 2013. This well was drilled to a total measured depth of 10,825 feet, had an effective lateral length of 3,810 feet and was completed with 14 frac stages. The Kibler 1H (100% WI), located in Trumbull County, Ohio, is currently resting. This well was drilled to a total measured depth of 14,257 feet, had an effective lateral length of 6,734 feet and was completed with 26 frac stages.
Halcón continues to delineate its Utica/Point Pleasant acreage position and expects the process to be substantially complete by the fourth quarter of 2013. The Company plans to adhere to a 60 day resting period on all wells throughout the delineation phase. The focus remains on building an inventory of approved/permitted multi-well pads in preparation for a full scale development program. There are currently three Utica/Point Pleasant wells producing/testing, three wells resting, one well being completed and one well being drilled. Floyd Wilson, Chairman and Chief Executive Officer, commented, "I am excited with our early stage Utica/Point Pleasant results. Our position in this part of the Utica/Point Pleasant play is highly prospective, in my opinion, and these results further validate our original thesis. We will refine our drilling and completion techniques in an effort to drill longer laterals, lower costs and increase recoveries. Halcón Field Services continues to evaluate infrastructure solutions and will be prepared to act accordingly based on the information we gather throughout our delineation phase."
I wouldn't say the results are "very good'. I'd say that they're better than a disaster but short of good. See, the key here is the little game they play with the wording. "Assuming full ethane recovery" is misleading, because nobody is getting full ethane recovery right now. Some companies (the ones that are honest with shareholders) present well data with both ethane recover and ethane rejection numbers.
I guess time will tell, Marcus. I agree that it is always difficult to put stock in what Halcon says. I am going to be optimistic and retreat from very good, but I do think this well may be good! Hopefully it will be good enough to stimulate some additional leasing in Venango County.