Nearly Half of Halcon 2014 Budget Targeting Bakken - ~$475 Million

Halcon Bakken Acreage Map
Halcon Bakken Acreage Map

Halcon is focused on drilling wells in the Fort Berthold area in 2014 and anticipates spending approximately 49% of its total drilling and completions budget in the Williston Basin. Based on previous budget estimates, that's about ~475 million.

Read more: Halcon Holds Production Guidance & Lowers its 2014 Capital Budget

The company's plan for 2014 is to focus on its "de-risked" acreage, which includes the Fort Berthold area.

“Floyd Wilson, CEO, said in a company statement, “our focus in 2014 is on drilling wells in the sweet spots of our de-risked acreage in the Williston Basin and El Halcón. We will also begin drilling wells on our newly acquired acreage located in what we believe to be the core of theTuscaloosa Marine Shale. We are primed for growth and have a deep drilling inventory. We are committed to maintaining capital discipline and dedicated to improving capital efficiency.”

Halcon's 2014 Bakken Guidance

In the first-quarter of 2014, Halcon anticipates weather-related production interruptions in the Bakken.

For the full-year, the Company plans to operate an average of 4 rigs and spud 40 to 50 gross operated wells. Halcon also anticipates participating in 200-225 gross non-operated wells, with an average working interest of 3%.

Halcon's Fourth-Quarter Bakken Production

In the fourth-quarter of 2013, Halcon Resource's Bakken production increased by 15% over the third-quarter to 24,125 boe/d, despite adverse weather conditions. Company estimates accounted for weather-related impacts of ~1,040 boe/d.

Halcon's Fourth-Quarter Bakken Activity

Halcon operated an average of five rigs in the Bakken, and participated in 50 non-operated wells, with an average working interest of 3% in the fourth-quarter of 2013.

In the Fort Berthold area, the company spudded eight wells and broutght 10 wells online. For some of Halcon's Fort Berthold area wells, strong results came from the application of the "slickwater frac" technique. The company plans on continuing this practice in 2014.

“At Winter NAPE, Wilson, was quoted, “[the company’s] most recent wells in the Bakken are the best ever.”

Halcón also spudded four wells and put two wells online in Williams County in the fourth-quarter.

Read more at halconresources.com

Winter NAPE Expo Business Conference Highlights - 2014

NAPE
NAPE

The NAPE Expo is a North American event with some international influence, which features key players in the oil and gas industry. The business conference theme for 2014 was sustainability in the U.S. oil and gas industry.

The conference touched on key issues such as hydraulic fracking, sustainable business strategies and technological innovations.

Multiple speakers  put a spotlight on the practice of hydraulic fracturing. Here are some of their comments:

  • Former Secretary of the Interior, Ken Salazar, said, "I believe hydraulic fracking is safe... there is not a single case where fracking has caused an environmental problem for anyone."
  • David Blackmon, Dir. FTI Consulting, said, "the biggest issue by far facing the industry today is water."
  • "Treatment and recycling will be one of the main drivers moving the industry forward over the next 10 years," said Andrew Slaughter, VP, Upstream Research, IHS

The Business of Unconventional Drilling and Technology

  • Robert Turnham, CEO, Goodrich Petroleum on business strategy: "we move early, identify opportunities and take the risk up-front. If you move early, then you enjoy lower royalty burdens straight off the top."
  • Industry targeting the "sweet spots" in the shale plays. Floyd Wilson, CEO, Halcon Resources, on the Bakken: "[the company's] most recent wells in the Bakken are the best ever."
  • Apache converting waste gas to electricity for field grid usage
  • General industry focus on artificial lift technology in shale drilling to quickly drain reservoirs
  • New diverter technology being utilized to make marginally economic wells profitable

Other Highlights from the Conference

  • Luke Keller, VP, BP America, said, "[the] U.S. could achieve energy independence by 2035."
  • "$2000 financial benefit to every American household by 2015 due to unconventional drilling of natural gas," according to Don McClure, VP, Government Stakeholder Relations and Legal, EnCana Oil and Gas USA
  • "Tremendous amount of light sweet crude is about to be discovered and put into the marketplace [in the U.S.]" according to Charles McConnell, Rice University
  • Industry encouraged to support better outreach and education initiatives via social media outlets

Learn more about NAPE by visiting napeexpo.com