Halcón Resources Sets New Operations Records in the Williston Basin

May 9, 2014 Kirk Eggleston

Halcon Bakken Acreage Map

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).

Halcón Williston Basin First Quarter Operations Update

Halcón operated an average of four rigs in the Williston Basin during the first quarter, and the company plans to keep an average of three to four rigs active for the remainder of the year. Average production for the quarter was 23,313 boe/d. That's a 73% increase compared to the same period in 2013.

Weather-related issues slowed down drilling and completion that were begun late in the fourth quarter of 2013. Despite the weather-related impacts and delays, Halcon saw average initial and 30 day production rates improve during the quarter. Company officials say activity in the Williston Basin has since returned to normal, and current production is approximately 25,000 Boe/d.

Halcón Non-Operated Interests in the Williston Basin

Halcón participated in 72 non-operated wells during the quarter with an average working interest of approximately 6%. Current production from non-operated wells is approximately 3,500 boe/d.

By contrast, there are currently 144 Bakken wells producing, 11 Bakken wells being completed or waiting on completion and 2 Bakken wells being drilled on Halcón's operated acreage.

Similarly, there are currently 44 Three Forks wells producing, 5 Three Forks wells being completed or waiting on completion and 2 Three Forks wells being drilled on the Company's operated acreage.