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Halcon's Output Jumps +75%; Adding Fourth Rig

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Halcon reported its Q1 2018 results.

Corporate Highlights:

• Q1 2018 production of 10,967 BOEPD (up +75% from 4Q17 and down -71% YOY)
• current production : 13,500 Boe/d net
• 2Q 2018 Forecast : The Company expects second quarter 2018 production to average between 13,000 and 14,000 Boe/d net.
• Increasing Rig Count: Halcón is currently running three operated rigs in the Delaware Basin with a fourth operated rig coming in the next few weeks. These four rigs will spend most of the remainder of 2018 in Monument Draw and West Quito Draw.
• Increasing FY-2018 production forecast to 17.5 Mboe/d up from 17Mboe/d

Monument Draw Area

Currently five horizontal lower Wolfcamp wells producing in this area. Additionally, Halcón has two wells waiting on completion and another three wells currently being drilled in this area.

Halcon's average 30 day peak IP rate for its first five operated horizontal wells in Monument Draw was 1,575 Boe/d (average completed lateral length of 8,706 feet).

Hackberry Draw Area

Drilled and completed 14 horizontal wells (twelve Wolfcamp, one 2^nd Bone Spring and one 3^rd Bone Spring). Additionally, Halcón has three wells flowing back after frac, one well being drilled out and another well currently being frac'd in this area.

Halcon's average 30 day peak IP rate for its first 9 operated Wolfcamp horizontal wells with 30 day rates available in Hackberry Draw was 936 Boe/d.

The Company's first 2^nd Bone Spring horizontal well in Hackberry Draw, the Berkley State West 2H, is one of the three wells currently flowing back after frac.

Revised 2018 Guidance

The guidance table below has been updated from previous 2018 guidance to reflect the addition of a fourth operated rig in May, 2018 as well as the inclusion of the Company's recently acquired West Quito Draw properties. This guidance also assumes a second spot frac crew is operating from mid-August to October, 2018.

Operations Update

Halcón is currently producing in excess of 13,500 Boe/d net. The Company expects second quarter 2018 production to average between 13,000 and 14,000 Boe/d net. Halcón is currently running three operated rigs in the Delaware Basin with a fourth operated rig coming in the next few weeks. These four rigs will spend most of the remainder of 2018 in Monument Draw and West Quito Draw. The Company also has one full-time frac crew operating and plans to source a spot frac crew in the second half of 2018.

Halcón currently holds 22,479 net acres in its Monument Draw area. The Company has five horizontal lower Wolfcamp wells producing in this area. Additionally, Halcón has two wells waiting on completion and another three wells currently being drilled in this area. Halcon's average 30 day peak IP rate for its first five operated horizontal wells in Monument Draw was 1,575 Boe/d (average completed lateral length of 8,706 feet). This area is currently producing approximately 3,850 Boe/d, net.

Halcón currently holds 10,622 net acres in its West Quito Draw area. The Company plans to spud its first operated horizontal Wolfcamp well in this area this summer. This area is currently producing approximately 1,350 Boe/d, net.

Halcón currently holds 27,115 net acres in its Hackberry Draw area. The Company has drilled and completed 14 horizontal wells (twelve Wolfcamp, one 2^nd Bone Spring and one 3^rd Bone Spring). Additionally, Halcón has three wells flowing back after frac, one well being drilled out and another well currently being frac'd in this area. Halcon's average 30 day peak IP rate for its first 9 operated Wolfcamp horizontal wells with 30 day rates available in Hackberry Draw was 936 Boe/d. The Company's first 2^nd Bone Spring horizontal well in Hackberry Draw, the Berkley State West 2H, is one of the three wells currently flowing back after frac. This area is currently producing approximately 8,250 Boe/d, net.