Drilling Down

Halcon Production Increases in 2014 but Not in Utica

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YOUNGSTOWN, Ohio — Halcon Resources Corp. says its oil and gas production increased 37% during the fourth quarter and 65% for the full year.

In preliminary results announced today, the Houston-based company said it expects production of 46,000 barrels of oil equivalent per day during the fourth quarter and 42,000 barrels of oil per day for all of 2014.

Product mix for the fourth quarter stood at 81% oil, 9% natural gas liquids, and 10% natural gas. Full year production is estimated to be 83% oil, 7% NGL and 10% natural gas.

Production estimates for 2015 remain flat, the company reported. Halcon said it expects to produce an average of 40,000 to 45,000 barrels of oil equivalent per day during the year.

As of Dec. 31, 2014, Halcon’s estimated proved reserves amounted to 189.1 million barrels of oil equivalent, the company said.

Halcon also reported it’s reducing its 2015 drilling and completion budget by an additional $25 million to account for lower service costs.

The energy company has five wells in production in Trumbull County – two in Lordstown Township, two in Hartford Township and one in Vienna Township. Halcon has two producing horizontal wells in Mahoning County, both of them in Jackson Township. The wells target the Utica/Point Pleasant shale formation.

Halcon announced last year that it would suspend drilling operations in the Utica shale and has not drilled new wells in the region since 2014.

Instead, Halcon is focused on tapping into rich oil reserves such as the Bakken/Three Forks shale play in North Dakota and the Eagle Ford shale in East Texas.

The company operates 172 producing Bakken wells and 53 Three Forks wells. Halcon currently has 14 Bakken wells and 4 Three Forks wells being completed or waiting on completion on its operated acreage.

Halcon currently has 89 East Texas Eagle Ford wells in production and five wells being completed or waiting on completion.

Published by The Business Journal, Youngstown, Ohio.