Halcón Resources Reduces 2015 Budget

Plunging Oil Prices Blamed for Latest Adjustment
halcon bakken

Halcón Operations in Bakken

In a press release on January 8th, Halcón Resources executives announced that they will slash their drilling and production budget almost in half for 2015. The Houston-based company affirmed it will reduce operations in the Bakken to two rigs in the Fort Berthold area of North Dakota.

Read here for more about Halcón in the Bakken

This is the second round of cuts for the Bakken producer in less than two months due to the continued decline in oil prices. Projected spending for the company is set at between $375 – 425 million, which represent a steep decline from 2014 numbers of $950 million. Even with decreased spending for 2015, production is expected to increase to an average 40,000-45,000 barrels per day, compared to 43,554 b/d in the third quarter of 2014.

Halcon CEO Floyd Wilson says that, “Our plan is to deploy capital to assets where results indicate EURs and initial production rates higher than our published type curves. We are comfortable with our current liquidity position and we expect our strong hedge portfolio to continue generating income well into 2016. Although we are significantly hedged, the continued weakness in crude oil prices, combined with elevated service costs, calls for conservative planning. We expect to see these costs come down dramatically during 2015.”

Read the full report at halconresources.com.

Halcón Resources Sets New Operations Records in the Williston Basin

Fort Berthold Well Has Record Breaking Initial Production (IP) rate of 4,225 boe/d for HK
Halcon Bakken Acreage Map

Halcon Bakken Acreage Map | Click to Enlarge

During the first quarter of 2014, Halcón Resources (HK) set new company operations records in the Williston Basin for drilling and production.

A major focus for Halcón is on improving efficiencies, particularly those associated with pad drilling. Currently, Halcón is in the process of putting six new wells online in the Fort Berthold area that were drilled from a single pad and spaced 660′ apart. The initial production (IP) rate for one of these wells during the quarter was a record breaking 4,225 boe/d. 

The company also recorded its fastest drilling times to date during the first-quarter. A Bakken well in the Fort Berthold area was drilled in 12 days (spud to total depth). Another Three Forks well in the Fort Berthold area was drilled in 17 days (spud to total depth).

[Read more…]

Wood Mackenzie Forecasts $15 Billion on Bakken Drilling and Completions – 2014

Estimated Production at 1.7 Million b/d of Oil in 2020
Wood Mackenzie Bakken and Three Forks Map

Wood Mackenzie Bakken and Three Forks Map

According to the oil and gas research and consulting firm Wood Mackenzie, $15 billion will be spent on drilling and completion in the Bakken in 2014, second only to the Eagle Ford Shale. This year, oil production is expected to reach the 1 million b/d mark, and grow markedly beyond that figure over the next 5 – 6 years.

Read more: Bakken Production Sets Another Record – More Than 10,000 ND Wells Producing

[Read more…]

QEP Resources Bakken & Three Forks Production Surpasses 21,000 boe/d

QEP Sees Potential For As Much As 200 Million boe at Fort Berthold
QEP Resources Fort Berthold Bakken Well Results

QEP Resources’ Fort Berthold Bakken Well Results | Click to Enlarge

QEP Resources Bakken and Three Forks production grew a little less than 1,000 boe/d in the third quarter to average 21,300 boe/d.

QEP brought 21 operated wells to production with impressive initial production rates. Ten wells in the South Antelope area came online with a 24-hour initial production (IP) rate of 3,412 boe/d and 11 wells in the Fort Berthold area came online with IPs of 2,588 boe/d. Many of those wells were drilled and completed on mult-well pads. [Read more…]

Enerplus’s US Production Grows With Fort Berthold Bakken Production

Lower Three Forks Could Add Significant Resource
Enerplus Bakken Map

Enerplus Bakken Map | Click to Enlarge

Enerplus grew U.S. oil production to more than 20,000 boe/d in the second quarter. Production from the Bakken was the primary driver, with volumes growing to 15,000 boe/d from the company’s Fort Berthold assets. [Read more…]

Halcon Bakken Well Surpasses 3,000 Boe/d On Fort Berthold Reservation

The Company Is Running Eight Rigs Across the Bakken & Three Forks
Halcon Resources Bakken Acreage Map

Halcon Resources Bakken Acreage Map (135,000 net acres) | Click to Enlarge

Halcon Resources is running eight rigs across a 135,000 acre position in the Bakken and continues to implement drilling & completion modifications.

The latest changes look to be paying dividends. The three most recent wells completed on the Fort Berthold Reservation had an average initial production of 2,648 boe/d (78% oil). That’s a 38% improvement over wells completed in the first quarter of 2013. [Read more…]