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Halcon Mulling Sale of Field Services Assets; Talks Recent Well IPs

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Halcon Resources reported its Q2 2018 results.

Potential Sale of Halcón Field Services

Halcón has engaged Scotiabank and BMO Capital Markets as its financial advisors for a potential partial or full sale of its Halcón Field Services infrastructure assets. The assets include water gathering, recycling, disposal and sourcing facilities, as well as gas gathering and treating infrastructure, power transmission and crude gathering systems across the Company's operating areas in the Delaware Basin.

Recent Well Results

Monument Draw area in Ward County

Halcón's Sealy Ranch 6401H - Wolfcamp

• Completed with a 9,591' effective lateral length

• Reached a 2-stream peak 24 hour IP rate of 2,219 Boe/d (89% oil) on a 38/64" choke

• Current 30-day average rate on this well is 1,756 Boe/d (86% oil) and continues to increase

Sealy Ranch 7701H and 7702H wells - Wolfcamp

• Average lateral length of 9,952'

• These wells were completed "wine rack style" in the lower and upper Wolfcamp zones 330' apart horizontally and 250' apart vertically

• Daily rates on these wells continue to increase with the latest 2-stream peak 24 hour IP rate for each well reaching 1,500 and 1,300 boe/d, respectively.

Hackberry Draw area in Pecos County

Bobby West 1H

• Completed with a 9,755' effective lateral length

• Had a 2-stream peak 24 hour IP rate of 1,352 Boe/d (89% oil) on a 34/64" choke in addition to a 30 day peak 2-stream IP rate of 1,085 Boe/d (87% oil).

Production Highlights:

- Q2 production of 12.8 MBOEPD (up +16% from 1Q18 and down -65% YOY)

• Second quarter production was negatively impacted by downtime primarily related to unexpected power reliability issues and inclement weather. The Company estimates that without this excess downtime, second quarter average daily production would have been ~13,300 Boe/d.

- Currently running three operated rigs in the Delaware Basin. The Company expects to maintain this rig level through the remainder of 2018 in addition to running one full-time frac crew.