The Kibler 1H was originally scheduled to connect into Blue Racer Midstream's Warren 2 pipeline, but production from this well had to be rerouted as a result of the recent Natrium (West Virginia) gas processing plant fire. A temporary alternate route was finalized and made available for the early October 2013 start-up. The Kibler 1H produced an average of 358 barrels of condensate per day and 1.6 million cubic feet of gas per day into sales over the first 30 days on a restricted 24/64 choke, which is in line with internal expectations. Halcón currently expects production from this well to be flowing into Blue Racer Midstream's Warren 2 pipeline in the first quarter of 2014.
The Company recently spudded its first offset well to the Kibler 1H. Halcón intends to continue to optimize completion techniques on its next few wells in an effort to improve performance and recoveries. In the near-term, the Company anticipates it will limit drilling in this play to the Southwest portion of its acreage in Trumbull and Mahoning Counties, Ohio.
There are currently three Utica/Point Pleasant wells producing, five wells that have been tested and are shut-in awaiting infrastructure, one well resting and one well being drilled. Halcón expects to operate one rig in the play throughout the remainder of 2013 and anticipates six wells to be flowing into sales pipelines by year end. The Company currently expects to operate one rig in the play in 2014.
2014 OutlookThe following guidance has been adjusted to exclude production from the divestiture of certain non-core conventional assets.
|Operating Costs and Expenses ($/Boe)|
|Lease Operating & Workover|
|Gathering, Transportation & Other|
|Drilling & Completion Capex - Excluding A&D ($ in billions) (1)||$1.1|
|(1) Excludes capitalized interest/G&A and discretionary capital related to leasehold acquisitions, infrastructure and other.|
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts