Barclays CEO Energy-Power Conference September 5, 2012 NYSE: HK
Liquids-Rich Asset Base and Significant Drilling Inventory 2 Liquids-Rich Exploratory Plays Not Shown Bakken Mississippi Lime Utica/Point Pleasant Woodbine/Eagle Ford PF Total Proved Reserves: 72.8 MMBoe TMS PF %…
Substantial Production and Reserves Growth Average Daily Production 40,000 373% 135% 89% 30,000 Boe/d 280% 20,000 10,000 0 2Q12 2Q12 PF (1) 4Q12E 2013E Proved Reserves 80,000 245% 60,000 Mboe 40,000 74% 20,000…
Building An Oil Company Targeted Net Acres Progress (1) First Spud Targeted Areas Utica/Point Pleasant 150,000 - 250,000 70% 3Q12 Woodbine/Eagle Ford 150,000 - 250,000 90% May TMS 150,000 - 200,000 35% 3Q12 Bakken 55,000 - 125,000…
Resource Potential Substantial Resource Potential Across Multiple Liquids-Rich Resource Style Plays Wet Gas Transitional Black Oil Utica / Utica / Utica / Woodbine/ Bakken Bakken Mississippi Midway/ TMS Point Pleasant Point…
Utica/Point Pleasant Overview (1) Utica/Point Pleasant Operating Detail Focus volatile oil and liquids-rich windows Access to cores, geochem and logs NY 3D seismic to optimize completions and reduce costs Intend to let wells rest…
Utica/Point Pleasant Wet Gas Well Details Type Curve 10,000 1,000 100 10 1 1 4 7 10 13 16 19 22 (Months) Gas (Mcf/d) Oil (Bbl/d) NGL (Bbl/d) Capital Costs / Well (MM) Gross EURs IRR Sensitivity (1) Total D&C 7.0 Oil…
(1) Utica/Point Pleasant Transitional Well Details Type Curve 10,000 1,000 100 10 1 1 4 7 10 13 16 19 22 (Months) Gas (Mcf/d) Oil (Bbl/d) NGL (Bbl/d) Capital Costs / Well (MM) Gross EURs IRR Sensitivity (2) Total…
Utica/Point Pleasant Black Oil Well Details Type Curve 1,000 100 10 1 1 4 7 10 13 16 19 22 (Months) Gas (Mcf/d) Oil (Bbl/d) NGL (Bbl/d) Capital Costs / Well (MM) Gross EURs IRR Sensitivity (1) Total D&C 7.0 Oil (MBbl)…
Top of Utica Structure Map SEISMIC LINE INVERSION HK PROPOSED WELL EST. SPUD: SEP/OCT 12 HK PROPOSED WELL EST. SPUD: SEP/OCT 12 12 NYSE: HK
Utica/Point Pleasant Rock Properties Rock Properties from Seismic Imaging Lateral Reservoir Boundaries A A POINT PLEASANT PINCH-OUT 13 NYSE: HK
Woodbine/Eagle Ford Overview Woodbine/Eagle Ford Operating Detail Type Curve Horizontal drilling and modern completion techniques 1,000 are a game changer Upper Cretaceous section 40% silica and clastics = 100 deliverability…
Woodbine Isopach: Base Austin Chalk to Top Buda 15 NYSE: HK
Woodbine/Eagle Ford Regional Stratigraphic Cross Section Base of Austin Chalk to top of Buda (influence of deltaic sandstone from the north-northeast) 16 NYSE: HK
Woodbine Well Performance Operated Well Summary (Gross) Wells on Production 15 Wells Flowing Back - Wells Currently Frac'ing - Wells WOC - Wells Drilling 3 Total Wells Spud 18 17 NYSE: HK
Tuscaloosa Marine Shale (TMS) Overview Tuscaloosa Marine Shale Operating Detail Type Curve Oil-prone reservoir in Louisiana and Mississippi 10,000 Silica-rich shale 1,000 Age equivalent to the Eagle Ford shale Long-laterals key to…
TMS Structure Base HK LAMBRIGHT 1H PTD: 13,500 EST. SPUD: 4Q12 HK BROADWAY 1H PTD: 14,500 EST. SPUD: 3Q12 TMS Penetrations 19 NYSE: HK
TMS Isopach HK LAMBRIGHT 1H PTD: 13,500 EST. SPUD: 4Q12 HK BROADWAY 1H PTD: 14,500 EST. SPUD: 3Q12 TMS Penetrations 20 NYSE: HK
Bakken Overview Bakken Operating Detail Type Curve (Operated) NW Williams County (operated) 1,000 2 rigs running 10 12 gross wells planned for 2H12 (30% 35% W.I.) 100 Eastern Montana (operated) 1 rig currently running 2 4 gross…
Bakken Position Diversified Footprint Across Bakken Trend 22 NYSE: HK
Operated Bakken Well Performance Operated Well Summary (Gross) Wells on Production 26 Wells Flowing Back 2 Wells Currently Frac'ing - Wells WOC 4 Wells Drilling 3 Total Wells Spud 35 23 NYSE: HK
Mississippi Lime Drilling Program 1 6 5 4 Osage County, OK 10 11 Initial drilling program 11 12 7 8 9 12 7 8 9 10 5 horizontal wells 13 18 17 16 15 14 13 18 17 16 15 14 4 SWD wells 27N 9E 27N 10E 22 23 60 day evaluation…
Midway/Navarro Overview Midway/Navarro Operating Detail Type Curve (1) Oil prone reservoirs with significant associated 10,000 high BTU gas and NGLs 1,000 First well (Kollatschny 1) spud in late May Two zone discovery…
Top of Navarro Time Structure Map HK HILLBOLDT 1 TMD: 15,500 A HK KOLLATSCHNY 1 TMD: 17,320 HK A 68 SQ. MI. 3D SURVEY IN-PROGRESS 27 NYSE: HK
Liquids-Rich Resource Style Exploratory Plays Targeting 200,000-350,000 net acres across two unconventional plays Expect to drill in both plays in 2012 Oil and liquids-rich targets Prospect identification driven by technical…
Eagle Ford Overview Eagle Ford Overview Eagle Ford Acreage Position To be divested in 2012 data room open soon HK has been actively drilling in this area for more than a year (20 wells drilled) 16 wells producing 1 well fracing 3…
Eagle Ford Project Improvements First three well completions largely ineffective Laterals 3200-5900 with 10-16 frac stages 40/70 white sand (embedment issues) Slick water, linear gels and cross link frac fluids Recent 9 wells…
Hedging Summary as of 8.27.12 Plan to hedge 80% of expected production over 18-24 month period Recently amended revolving credit facility terms to allow hedging of up to 85% of proved reserves Oil Hedge Summary 2H 2012 FY 2013 FY…
Pro Forma Capitalization and Liquidity As of June 30, 2012 ( in millions) High Yield Halcon Acquisition Offering Halcon Actual Adjustments (1) Adjustments Pro Forma Cash and Equivalents 219.2 (872.1) 748.9 96.0 Long-Term Debt…
2012 Capital Budget Breakdown By Category D&C By Area SEC Pro Forma SEC Pro Forma Accounting Basis Accounting Basis Basis Basis Leasehold Acquisitions 55% 50% Utica/Point Pleasant 10% 7% Drilling & Completions 35% 40% Woodbine/Eagle…
HK Investment Highlights Proven Management Team With Significant Ownership Stake Technical Bias With Extensive Resource Style Play Experience Attractive Liquids-Rich Asset Portfolio With Compelling Economics Positioned For…
Appendix NYSE: HK
Pro Forma Production and Reserves (74% Liquids) Avg. Net Daily Production (Boe/d) (1) Proved Reserves (2) Variance Equiv. % Total PV10 (2) % Total 1Q12 2Q12 Oil MBbls Gas MMcf NGL MBbls % Oil/NGLs % PD Q/Q Mboe Reserves (MM) PV10…
Pro Forma Proved Reserves Overview Pro forma proved reserve base is liquids-rich (geographically and by basin) diversified, with an attractive PDP / PUD mix Highly Diversified Pro Forma Proved Reserves of 72.8 MMBoe 74% of Pro Forma…
Halcn History Recapitalized RAM Energy Resources, Inc. (1) Funded with 550 million investment by EnCap, Liberty Energy Holdings, Mansefeldt Raised 400 million of Investment Corp., and Halcn Management equity through PIPE Closed the…
HK Ownership HALRES LLC, Comprised of HK Management and Seasoned Energy-Focused Private Equity Firms, Have Substantial Equity Stakes Percent Convertible Fully Percent Percent Owner Basic Warrants (1) Options Net Diluted (3)…
Contact: Scott Zuehlke, VP - Investor Relations 1000 Louisiana St., Suite 6700, Houston, TX 77002 832-538-0314 szuehlkehalconresources.com www.halconresources.com NYSE: HK
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