The wells brought online in the first quarter had an average effective lateral length of 6,716 feet and were completed with an average of 23 frac stages.
As previously disclosed, a combination of gas flaring, the implementation of full scale pad drilling and underperforming wells drilled to define the edge of the Halliday Field in Leon County negatively impacted production by approximately 1,333 Boe/d in the first quarter of 2013. Based on extensive technical work and recent well data, Halcón expects Woodbine results to improve and plans to focus on drilling in the core of the Halliday Field.
The Company has determined that the preferred initial method of artificial lift is jet lift, with the long term solution being rod pump. Halcón is currently reviewing options to move immediately to rod pump.
On the drilling side, the Company significantly reduced spud to target depth times by an average of 27% during the first quarter of 2013. In addition, footage drilled per day increased by approximately 23% for wells spud from January 2013 to March 2013.There are currently 30 horizontal Woodbine wells producing, 11 wells being completed or waiting on completion and 3 wells being drilled. Portfolio Management Halcón has executed a definitive agreement to sell its Eagle Ford assets in Fayette and Gonzales Counties, Texas. The Company anticipates closing on the sale of these assets in the third quarter of 2013. In addition, subject to market conditions, Halcón intends to divest approximately 4,500 Boe/d of production from conventional assets in 2013. Outlook The following production and cost guidance for the second quarter of 2013 reflects the divestment of 500 Boe/d of production from certain properties in South Louisiana in the fourth quarter of 2012, which along with the aforementioned impacts to production amounts to a total of approximately 3,333 Boe/d.
|Operating Costs and Expenses ($/Boe)|