Following positive well results, Halcon to add more Permian acres

By Luke Geiver | June 06, 2017

Halcon Resources Corp. received better than expected production results from its first Permian Basin well. Completed with a lateral length of 5,167 feet targeting the Wolfcamp A interval, Halcon’s Ward County, Texas, well “is significantly exceeding Halcon’s type curve EUR estimates for its Ward County acreage of 1,258 Mboe for a 10,000 foot lateral,” according to the company.

Based on the results of the CRMWD 79 #1H well, Halcon has chosen to exercise an option to acquire more acres in the area. For $11,000 per acre, Halcon will add 6,720 net acres. The option to acquire the acres expires on June 15. The CRMWD 79 #1H produced 1,038 boe/d on its 20-day average.

Earlier this year, Halcon closed on an acquisition of 3,634 acres in Pecos County for $88 million. To fund its newly acquired acreage in Pecos and the new acreage it has chosen to add in Ward County, Halcon intends to sell its non-operated acreage in the Williston Basin. The property includes 2,350 boepd made up of 91 percent oil spread across 15,600 acres that still have 1,000 gross undeveloped locations. The sale of the assets could take place later this summer.

In January, Halcon exited the Eagle Ford shale play, receiving $500 million for its assets.