Email
Print 
Bookmark
The Company is operating eight rigs on its 135,000 net acre position in the Williston Basin. The implementation of drilling and completion modifications continues to yield impressive results.
Specifically in the Fort Berthold area, Halcón has transitioned to batch pad drilling and made several modifications to its completion design. The Company is utilizing plug and perf on completions. In addition, Halcón has changed to ceramic proppant, increased the proppant volume per lateral foot, increased stage density and is employing simultaneous fracs or zipper fracs.
The three most recently drilled and completed Bakken wells in the Fort Berthold area have an average initial production rate of 2,648 Boe/d (78% oil), which represents a 38% improvement versus all Bakken wells drilled and completed by the Company in this area in the first quarter of 2013 using the previous completion method. The most recently drilled and completed Bakken well in the Fort Berthold area produced at an initial rate of 3,060 Boe/d (90% oil), the highest initial production rate of any Company-owned well in the Bakken formation. This well was the first well drilled on a two-well pad. The frac plugs are currently being drilled out on the second well, which has been flowing back during drill out, and this well is currently producing 2,732 Boe/d (86% oil) with just 67% of the lateral cleaned out.
Similarly, the last four Three Forks wells drilled in the Fort Berthold area have an average initial production rate of 2,094 Boe/d (86% oil), a 77% improvement to all other Three Forks wells completed by Halcón in the Fort Berthold area during the first quarter of 2013.
The Company is currently in the process of testing 660 foot spacing for Bakken wells in the Fort Berthold area. This testing will involve surface and downhole microseismic with results expected by the end of 2013. It is important to note that Halcón holds a 15.5% working interest in Continental Resources' operated Rollefstad Unit, which will test the upper three benches of the Three Forks formation. The Rollefstad Unit is located adjacent to the Company's Bakken downspacing test acreage.
Halcón expects well costs in the Fort Berthold area to decrease by approximately 10% to $9.0 million by the end of 2013, through efficiencies related to pad drilling operations, implementation of centralized production facilities and continued optimization of completion techniques.
In the Marmon area, the average initial production rate for the two most recently drilled and completed Bakken wells is 91% higher than the average initial production rate for all Company-operated Bakken wells previously completed in the area. Halcón believes the significant improvement in initial rates is attributable to a modified completion design that appears to be a game changer in this area of the Williston Basin. The Company estimates the average ultimate recovery from these two Bakken wells should be approximately 462 Mboe, which is more than 40% higher than the average EUR of Company-owned Bakken wells drilled with the previous completion technique in this area.
Well costs in the Marmon area are currently averaging approximately $9.5 million. Halcón expects these well costs to decrease by approximately 5% to $9.0 million by the end of 2013. Further well cost reduction is expected in 2014 once pad drilling is fully implemented in this area.
There are currently 105 Bakken wells producing, 9 Bakken wells being completed or waiting on completion and 7 Bakken wells being drilled on the Company's operated acreage in the Williston Basin. Similarly, there are currently 32 Three Forks wells producing, 5 Three Forks wells being completed or waiting on completion and 1 Three Forks well being drilled on Halcón's operated acreage.
