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HOUSTON, TEXAS, April 15, 2013 (GLOBE NEWSWIRE) -- Halcón Resources Corporation (NYSE: HK) ("Halcón" or the "Company") today unveiled a new East Texas Eagle Ford Shale play and provided a general update.
New East Texas Eagle Ford
Internally referred to as El Halcón, this new East Texas Eagle Ford Shale play has been established as the Company's fourth core area. The play extends across several counties in East Texas. Halcón is targeting 150,000 net acres in the play and currently has in excess of 50,000 net acres leased or under contract.
The Company has seven wells producing, one well being completed and three wells being drilled in this play. The average initial and 30 day rates for the producing wells have been 859 barrels of oil equivalent per day ("Boe/d", 94% oil) and 694 Boe/d (94% oil), respectively. These seven Eagle Ford wells have an average effective lateral length of 5,632 feet and were completed with an average of 28 frac stages. Expectations are to spud 15 to 20 wells in the play in 2013 by operating 1 to 3 rigs while spending approximately $100 million. Halcón's early stage estimates for reserves per well are 350,000 to 400,000 barrels of oil equivalent with development costs of $7 million to $8 million.
Floyd C. Wilson, Chairman and Chief Executive Officer, commented, "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."
The Company is fully engaged in the drilling phase of its development and is currently operating 16 rigs on its assets. Halcón estimates it will add up to three operated drilling rigs to its program by year end 2013.
Based on 3D seismic data and drilling results, the Company has decided to dedicate more resources to its 110,000 net acre Wilcox position predominantly located in Southwest Louisiana. Halcón recently embarked on a multi-well program in this play.