HOUSTON, TEXAS, Oct. 2, 2012 (GLOBE NEWSWIRE) -- Halcón Resources Corporation (NYSE: HK) ("Halcón" or the "Company") today provided an operational update. The recently closed acquisitions of GeoResources, Inc. and assets in East Texas ("East Texas Assets") were structured to bolster the Company's production profile and reserve base while providing additional growth opportunities in liquids-rich regions. Halcón continues to transition from the leasehold acquisition phase of its development into the drilling phase with 11 operated drilling rigs currently running on resource style assets. The Company estimates that it will add four to six operated drilling rigs to its resource style drilling program by year end 2012. Halcón Field Services LLC, a midstream subsidiary of Halcón, continues to work on infrastructure construction and solutions in all areas of activity. Operational Update Woodbine/Eagle Ford Halcón currently has approximately 190,000 net acres, prospective for the Woodbine, Eagle Ford and other formations, leased or under contract in Leon, Madison, Grimes and Polk Counties, Texas. The Company has 15 horizontal wells producing and 5 wells being drilled. Expectations are to spud 18 to 22 wells in the play in the second half of 2012 with an average working interest of approximately 84%. Halcón is currently operating five rigs across Leon, Madison and Grimes Counties, Texas and plans to add an additional one to two rigs by the end of 2012. Pad drilling has been employed on portions of the Company's Woodbine/Eagle Ford acreage. Halcón's first Woodbine completion, the AM Easterling-Gresham A 1H (92% working interest), had an initial gross production rate of approximately 942 barrels of oil equivalent per day (Boe/d), or 919 barrels of oil and 139 Mcf of natural gas, on a 32/64" choke. Average daily production from the well over its first thirty days was approximately 706 Boe/d (98% oil). The well was drilled to a total measured depth of 14,265 feet, including a 6,730 foot lateral, and was completed with 24 stages.
Bakken/Three ForksThe Company has working interests in approximately 55,000 net acres prospective for the Bakken and Three Forks formations in Williams, Mountrail and McKenzie Counties, North Dakota and Roosevelt and Richland Counties, Montana. Halcón anticipates operating the majority of its acreage in Williams County, North Dakota and in Montana. The Company expects to lease or otherwise acquire or trade for acreage within and around all of its existing acreage and is targeting up to 125,000 net acres in the Williston Basin. There are currently 29 wells producing, 2 wells being completed, 4 wells waiting on completion and 3 wells being drilled on the Halcón's operated acreage. Two of the most recently completed operated wells (28% working interest) in Williams County, North Dakota averaged 543 Boe/d (90% oil) and 610 Boe/d (90% oil), respectively, over the first ten days of production while still flowing. The Company plans to continue running three operated rigs in the Williston Basin for the remainder of 2012. Expectations are to spud 12 to 16 horizontal wells on the Halcón's operated acreage with an average working interest of 33% in the second half of 2012. Multiple initiatives are underway intended to further enhance economics by reducing costs and improving recoveries. In addition, the Company expects to participate in 25 to 30 wells on its non-operated acreage in the second half 2012 with an average working interest of approximately 8%. Utica/Point Pleasant Halcón currently has approximately 130,000 net acres leased or under contract in Trumbull and Mahoning Counties, Ohio and Mercer, Venango and Crawford Counties, Pennsylvania. The Company plans to spud four to six wells in the second half 2012, and expects to spud the first two wells in October. The average working interest in these wells will be approximately 95%. Three pad locations are currently being built with plans to begin construction on at least three more by the end of 2012. Halcón has five approved drilling permits and is in various stages of the permitting process for several more wells. The Company expects to gain drilling efficiencies while lowering well costs through the use of pad drilling once a healthy backlog of approved drilling permits has been established.
Due to infrastructure requirements, combined with the practice of shutting in wells for up to 60 days after completion in an effort to maximize recoveries, Halcón estimates a spud-to-production time of 120 days per well. First production from the Utica/Point Pleasant is anticipated during the first quarter of 2013 and is expected to grow rapidly throughout the year.Tuscaloosa Marine Shale (TMS) The Company currently has approximately 70,000 net acres leased or under contract in Rapides and Avoyelles Parishes, Louisiana. Halcón is targeting 150,000 to 200,000 net acres in the play. The Company believes that well costs below $10 million per well on a developmental basis and long laterals are crucial to the play's economics. Halcón has spud its first well, the Broadway 1H, in Rapides Parish, Louisiana. Current plans are to spud one to three wells in the second half of 2012 with an average working interest of 100%, utilizing one rig. Exploratory Plays The Company anticipates building a position of 200,000 to 350,000 net acres in undisclosed unconventional exploratory plays. Halcón has already drilled a pilot well in one undisclosed play and is currently evaluating results from the core analysis. The Company's strategy for the exploratory plays is to use in-house geologic expertise to identify areas that it believes are prospective for oil or liquids-rich production. At this time, due to competitive concerns, Halcón is not disclosing additional details related to these liquids-rich exploratory plays. Midway/Navarro The Company currently has approximately 20,000 net acres leased or under contract in Austin and Colorado Counties, Texas. Halcón is targeting 50,000 to 75,000 net acres across this trend. The Company has drilled two wells in Austin County, Texas. Halcón previously disclosed that its initial vertical well, the Kollatschny 1, was drilled to a total measured depth of 17,320 feet, and completed in the Navarro formation. This well is currently being tested and the Company is contemplating an offset well to this initial well to access the Midway sands. The second vertical well, the Hillboldt 1, was recently drilled to a total measured depth of 15,500 feet and had significant shows in the Wilcox, Midway and Navarro formations. This well is currently being completed in the Navarro formation.
WilcoxHalcón currently has approximately 89,000 net acres leased, optioned or under contract in Newton County, Texas and Beauregard and Allen Parishes, Louisiana. The Company has completed the first well of its Wilcox program, the Columbia Land & Timber 9-1. Halcón has a 97.5% working interest in this upper Wilcox well with total cost estimated at $1.5 million for the completion and facility installation. The well averaged 481 Boe/d (93% oil) over its first seven days of production and is currently producing approximately 484 Boe/d (92% oil) on a 24/64" choke after producing for 23 days. The Company plans to use one rig to spud two to four wells in the trend in the second half of 2012 with an average working interest of approximately 85%. The next well in Halcón's Wilcox program is expected to spud in November. The wells will initially be drilled vertically and completed using multi-stage hydraulic fracturing with the intent of comingling production from the upper, middle and lower Wilcox; however, the Company believes there is an opportunity to drill horizontally to exploit the resource. Mississippi Lime Halcón holds a concession for approximately 45,000 gross and net acres from the Osage Minerals Council in Osage County, Oklahoma. The Company has drilled five horizontal wells (100% working interest) and four salt water disposal wells since the end of April 2012. Four of the wells are producing and the fifth well is scheduled to be completed in October 2012. Halcón plans to evaluate the results from all five wells for approximately 60 days before disclosing detailed production information . Eagle Ford The Company has working interests in approximately 24,000 net acres, prospective for the Eagle Ford, Austin Chalk and other formations, in Fayette and Gonzales Counties, Texas. There are currently 19 wells producing, 1 well being completed, 1 well waiting on completion and 2 wells being drilled. Due to improved completion techniques, the most recent wells are performing significantly better than previous wells. The more recent wells averaged 30, 60 and 90 day production rates of 461 Boe/d, 393 Boe/d and 349 Boe/d, respectively. Four wells recently put online in Gonzales County, Texas have produced for 30 days and have averaged approximately 536 Boe/d (94% oil). Halcón recently completed three wells in Fayette County, Texas that have been online from 4 to 13 days with average rates of 496, 617 and 707 Boe/d (94% oil), respectively.
Gross daily production from the Eagle Ford is currently averaging approximately 5,070 Boe/d (93% oil) with average net daily production of approximately 1,960 Boe/d, compared to average net daily production of 642 Boe/d in the second quarter of 2012. The Company is running two operated rigs and expects to spud 9 to 11 wells with an average working interest of 45% in the second half of 2012.Due to a non-compete agreement, this Eagle Ford property will be divested. Halcón opened a data room on September 17, 2012 and believes this property will be sold and closed by year end 2012. Forward-Looking Statements This release contains forward-looking statements within the meaning of Section 27A of the Securities Act 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", "forecasts", "potential", "possible", or "probable" or statements that certain actions, events or results "may", "will", "should", or "could" be taken, occur or be achieved. The forward-looking statements include statements about future events, including, without limitation, the anticipated closing and timing of closing of the acquisitions discussed in this press release, expectations regarding drilling plans, anticipated commodity pricing, anticipated leasehold acquisitions, and guidance regarding the amount and type of production, capital expenditures, cash and lease operating expenses, general and administrative expenses and production taxes. Forward-looking statements are based on current beliefs and expectations and involve certain assumptions or estimates that involve various risks and uncertainties that could cause actual results to differ materially from those reflected in the statements. However, whether actual results and developments will conform with expectations is subject to a number of risks and uncertainties, including but not limited to: that leasehold acquisitions may not close or may not involve unexpected costs; the risks of the oil and gas industry (for example, operational risks in exploring for, developing and producing crude oil and natural gas; risks and uncertainties involving geology of oil and gas deposits; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to future production, costs and expenses; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; health, safety and environmental risks and risks related to weather such as hurricanes and other natural disasters); uncertainties as to the availability and cost of financing; fluctuations in oil and gas prices; inability to timely integrate and realize expected value from acquisitions, inability of management to execute its plans to meet its goals, shortages of drilling equipment, oil field personnel and services, unavailability of gathering systems, pipelines and processing facilities and the possibility that government policies may change or governmental approvals may be delayed or withheld. Halcón's annual report on Form 10-K for the year ended December 31, 2011, quarterly reports on Form 10-Q and other documents filed by Halcón with the Securities and Exchange Commission discuss some of the important risk factors identified that may affect Halcón's business, results of operations, and financial condition. Readers should not place undue reliance on any such forward-looking statements, which are made only as of the date hereof. The Company has no duty, and assumes no obligation, to update forward-looking statements as a result of new information, future events or changes in the Company's expectations.