HOUSTON, TEXAS, Oct. 2, 2012 (GLOBE NEWSWIRE) -- Halcón Resources Corporation (NYSE: HK)("Halcón" or the "Company") today provided an operationalupdate. The recently closed acquisitions ofGeoResources, Inc. and assets in East Texas ("East Texas Assets")were structured to bolster the Company's production profileand reserve base while providing additional growth opportunities inliquids-rich regions. Halcón continues to transition from theleasehold acquisition phase of its development into the drillingphase with 11 operated drilling rigs currently running on resourcestyle assets. The Company estimates that it will addfour to six operated drilling rigs to its resource style drillingprogram by year end 2012. Halcón Field Services LLC, amidstream subsidiary of Halcón, continues to work on infrastructureconstruction and solutions in all areas of activity. Operational Update Woodbine/Eagle Ford Halcón currently has approximately 190,000 netacres, prospective for the Woodbine, Eagle Ford and otherformations, leased or under contract in Leon, Madison, Grimes andPolk Counties, Texas. The Company has 15 horizontal wells producingand 5 wells being drilled. Expectations are to spud 18 to 22wells in the play in the second half of 2012 with an averageworking interest of approximately 84%. Halcón is currentlyoperating five rigs across Leon, Madison and Grimes Counties, Texasand plans to add an additional one to two rigs by the end of2012. Pad drilling has been employed on portions of theCompany's Woodbine/Eagle Ford acreage. Halcón's first Woodbine completion, the AM Easterling-Gresham A1H (92% working interest), had an initial gross production rate ofapproximately 942 barrels of oil equivalent per day (Boe/d), or 919barrels of oil and 139 Mcf of natural gas, on a 32/64" choke. Average daily production from the well over its first thirty dayswas approximately 706 Boe/d (98% oil). The well wasdrilled to a total measured depth of 14,265 feet, including a 6,730foot lateral, and was completed with 24 stages.
Bakken/Three ForksThe Company has working interests in approximately 55,000 netacres prospective for the Bakken and Three Forks formations inWilliams, Mountrail and McKenzie Counties, North Dakota andRoosevelt and Richland Counties, Montana. Halcón anticipatesoperating the majority of its acreage in Williams County, NorthDakota and in Montana. The Company expects to lease orotherwise acquire or trade for acreage within and around all of itsexisting acreage and is targeting up to 125,000 net acres in theWilliston Basin. There are currently 29 wells producing, 2 wells being completed,4 wells waiting on completion and 3 wells being drilled on theHalcón's operated acreage. Two of the most recently completedoperated wells (28% working interest) in Williams County, NorthDakota averaged 543 Boe/d (90% oil) and 610 Boe/d (90%oil), respectively, over the first ten days of production whilestill flowing. The Company plans to continue running threeoperated rigs in the Williston Basin for the remainder of2012. Expectations are to spud 12 to 16 horizontal wells onthe Halcón's operated acreage with an average working interest of33% in the second half of 2012. Multiple initiatives areunderway intended to further enhance economics by reducing costsand improving recoveries. In addition, the Company expects to participate in 25 to 30wells on its non-operated acreage in the second half 2012 with anaverage working interest of approximately 8%. Utica/Point Pleasant Halcón currently has approximately 130,000 netacres 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 inthe second half 2012, and expects to spud the first two wells inOctober. The average working interest in these wells will beapproximately 95%. Three pad locations are currently beingbuilt with plans to begin construction on at least three more bythe end of 2012. Halcón has five approved drilling permitsand is in various stages of the permitting process for several morewells. The Company expects to gain drilling efficiencieswhile lowering well costs through the use of pad drilling once ahealthy backlog of approved drilling permits has been established.
Due to infrastructure requirements, combinedwith the practice of shutting in wells for up to 60 days aftercompletion in an effort to maximize recoveries, Halcón estimates aspud-to-production time of 120 days per well. Firstproduction from the Utica/Point Pleasant is anticipated during thefirst quarter of 2013 and is expected to grow rapidly throughoutthe year.Tuscaloosa Marine Shale (TMS) The Company currently has approximately 70,000net acres leased or under contract in Rapides and AvoyellesParishes, Louisiana. Halcón is targeting 150,000 to 200,000net acres in the play. The Company believes that wellcosts below $10 million per well on a developmental basis and longlaterals 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 oneto three wells in the second half of 2012 with an average workinginterest of 100%, utilizing one rig. Exploratory Plays The Company anticipates building a position of200,000 to 350,000 net acres in undisclosed unconventionalexploratory plays. Halcón has already drilled a pilot well inone undisclosed play and is currently evaluating results from thecore analysis. The Company's strategy for the exploratory plays is to usein-house geologic expertise to identify areas that it believes areprospective for oil or liquids-rich production. At this time,due to competitive concerns, Halcón is not disclosing additionaldetails related to these liquids-rich exploratory plays. Midway/Navarro The Company currently has approximately 20,000 net acres leasedor under contract in Austin and Colorado Counties, Texas. Halcón is targeting 50,000 to 75,000 net acres across thistrend. The Company has drilled two wells in Austin County, Texas. Halcón previously disclosed that its initial vertical well, theKollatschny 1, was drilled to a total measured depth of 17,320feet, and completed in the Navarro formation. This well iscurrently being tested and the Company is contemplating an offsetwell to this initial well to access the Midway sands. Thesecond vertical well, the Hillboldt 1, was recently drilled to atotal measured depth of 15,500 feet and had significant shows inthe Wilcox, Midway and Navarro formations. This well iscurrently being completed in the Navarro formation.
WilcoxHalcón currently has approximately 89,000 netacres leased, optioned or under contract in Newton County, Texasand Beauregard and Allen Parishes, Louisiana. The Company has completed the first well of itsWilcox program, the Columbia Land & Timber 9-1. Halcónhas a 97.5% working interest in this upper Wilcox well with totalcost estimated at $1.5 million for the completion and facilityinstallation. The well averaged 481 Boe/d (93% oil) over itsfirst seven days of production and is currently producingapproximately 484 Boe/d (92% oil) on a 24/64" choke after producingfor 23 days. The Company plans to use one rig to spud two tofour wells in the trend in the second half of 2012 with an averageworking interest of approximately 85%. The next well inHalcón's Wilcox program is expected to spud in November. Thewells will initially be drilled vertically and completed usingmulti-stage hydraulic fracturing with the intent of cominglingproduction from the upper, middle and lower Wilcox; however, theCompany believes there is an opportunity to drill horizontally toexploit the resource. Mississippi Lime Halcón holds a concession for approximately 45,000 gross and netacres 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 endof April 2012. Four of the wells are producing and the fifthwell is scheduled to be completed in October 2012. Halcónplans to evaluate the results from all five wells for approximately60 days before disclosing detailed productioninformation . Eagle Ford The Company has working interests in approximately 24,000 netacres, prospective for the Eagle Ford, Austin Chalk and otherformations, in Fayette and Gonzales Counties, Texas. There are currently 19 wells producing, 1 wellbeing completed, 1 well waiting on completion and 2 wells beingdrilled. Due to improved completion techniques, the mostrecent wells are performing significantly better than previouswells. The more recent wells averaged 30, 60 and 90 dayproduction rates of 461 Boe/d, 393 Boe/d and 349 Boe/d,respectively. Four wells recently put online in GonzalesCounty, Texas have produced for 30 days and have averagedapproximately 536 Boe/d (94% oil). Halcón recently completedthree wells in Fayette County, Texas that have been online from 4to 13 days with average rates of 496, 617 and 707 Boe/d (94% oil),respectively.
Gross daily production from the Eagle Ford iscurrently averaging approximately 5,070 Boe/d (93% oil) withaverage net daily production of approximately 1,960 Boe/d, comparedto average net daily production of 642 Boe/d in the second quarterof 2012. The Company is running two operated rigs and expectsto spud 9 to 11 wells with an average working interest of 45% inthe second half of 2012.Due to a non-compete agreement, this Eagle Fordproperty will be divested. Halcón opened a data room onSeptember 17, 2012 and believes this property will be sold andclosed by year end 2012. Forward-Looking Statements This release contains forward-looking statements within themeaning of Section 27A of the Securities Act and Section 21E of theSecurities Exchange Act of 1934 as amended. Statements that are not strictly historical statementsconstitute forward-looking statements and may often, but notalways, 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 orresults "may", "will", "should", or "could" be taken, occur or beachieved. The forward-looking statements include statementsabout future events, including, without limitation, the anticipatedclosing and timing of closing of the acquisitions discussed in thispress release, expectations regarding drilling plans, anticipatedcommodity pricing, anticipated leasehold acquisitions, and guidanceregarding the amount and type of production, capital expenditures,cash and lease operating expenses, general and administrativeexpenses and production taxes. Forward-looking statements arebased on current beliefs and expectations andinvolve certain assumptions or estimates thatinvolve various risks and uncertainties that could causeactual results to differ materially from those reflected in thestatements. However, whether actual results and developmentswill conform with expectations is subject to a number of risks anduncertainties, including but not limited to: that leaseholdacquisitions may not close or may not involve unexpected costs; therisks of the oil and gas industry (for example, operational risksin exploring for, developing and producing crude oil and naturalgas; risks and uncertainties involving geology of oil and gasdeposits; the uncertainty of reserve estimates; the uncertainty ofestimates and projections relating to future production, costs andexpenses; potential delays or changes in plans with respect toexploration or development projects or capital expenditures;health, safety and environmental risks and risks related to weathersuch as hurricanes and other natural disasters); uncertainties asto the availability and cost of financing; fluctuations in oil andgas prices; inability to timely integrate and realize expectedvalue from acquisitions, inability of management to execute itsplans to meet its goals, shortages of drilling equipment, oil fieldpersonnel and services, unavailability of gathering systems,pipelines and processing facilities and the possibility thatgovernment policies may change or governmental approvals may bedelayed or withheld. Halcón's annual report on Form 10-K for theyear ended December 31, 2011, quarterly reports on Form 10-Q andother documents filed by Halcón with the Securities and ExchangeCommission discuss some of the important risk factors identifiedthat may affect Halcón's business, results of operations, andfinancial condition. Readers should not place undue relianceon any such forward-looking statements, which are made only as ofthe date hereof. The Company has no duty, and assumes noobligation, to update forward-looking statements as a resultof new information, future events or changes in theCompany's expectations.