SAN ANTONIO -- Halcón Resources Corp., which has a distinguished history in the Eagle Ford, now has its talons in an area east of the San Marcos Arch called the El Halcón play.
According to Charles Cusack, Halcón’s executive vice president and chief operating officer, the economics of El Halcón are compelling.
“Drilling, production and seismic acquisitions in El Halcón have been very significant,” Cusack said at Hart Energy’s recent DUG Eagle Ford conference. He added that the company’s position in the play looks encouraging.
As of now, Cusack said that Halcón has about 101,000 net acres leased, and that “our acreage is in the sweet spot of the play.” During the second half of 2014, Cusack said the company is expected to spud about 22 gross operated wells with three rigs. In the future Halcón will have 800 to 1,000-plus locations on which to drill, depending of spacing assumptions, he added.
Cusack emphasized that the company, which has been in the El Halcón since 2013, is experiencing improved well economics. He cited reduced drilling days; lower fracking costs; improvements in drilling and completions techniques; and optimized artificial lift.
Halcón Resources, which started out as Petrohawk Energy Corp., was one of the original discoverers of the Eagle Ford, according to Cusack. In August 2011, BHP Billiton acquired Petrohawk for more than $12 billion. In early 2012, former Petrohawk CEO Floyd Wilson started Halcón, bringing some of the original Petrohawk staff with him, including Cusack.
Comparing the South Texas Eagle Ford with the East Texas, or El Halcón, portion of the play, Cusack cited similarities. For example, total organic carbon on both sides of the San Marcos Arch is greater than 2% by weight. Both plays have low swelling clay. Thickness is 100 feet to 300 feet in South Texas and 100 feet to 200 feet in East Texas. South Texas has an average clay content of less than 20% while East Texas has 25% to 45%.
Looking at the entire Eagle Ford Shale, Cusack said that since October 2008─when production began to crank up─about 11,700 wells have been produced in 26 counties.
He also shared these figures:
• As of June 2014, cumulative production was 630 million barrels of oil (MMbbl); 630 MMbbl of condensate; and 3.7 trillion cubic feet of gas.
• So far in 2014, average daily production has been 1 million barrels of oil; 233 million barrels of condensate; and 4 billion cubic feet of gas.
• About 260 rigs are currently drilling.
• About 3,900 permits are currently filed.
• The Eagle Ford has contributed billions of dollars to the Texas economy.
Recommended Reading
Brett: Oil M&A Outlook is Strong, Even With Bifurcation in Valuations
2024-04-18 - Valuations across major basins are experiencing a very divergent bifurcation as value rushes back toward high-quality undeveloped properties.
Marketed: BKV Chelsea 214 Well Package in Marcellus Shale
2024-04-18 - BKV Chelsea has retained EnergyNet for the sale of a 214 non-operated well package in Bradford, Lycoming, Sullivan, Susquehanna, Tioga and Wyoming counties, Pennsylvania.
Triangle Energy, JV Set to Drill in North Perth Basin
2024-04-18 - The Booth-1 prospect is planned to be the first well in the joint venture’s —Triangle Energy, Strike Energy and New Zealand Oil and Gas — upcoming drilling campaign.
PGS, TGS Merger Clears Norwegian Authorities, UK Still Reviewing
2024-04-17 - Energy data companies PGS and TGS said their merger has received approval by Norwegian authorities and remains under review by the U.K. Competition Market Authority.
Energy Systems Group, PacificWest Solutions to Merge
2024-04-17 - Energy Systems Group and PacificWest Solutions are expanding their infrastructure and energy services offerings with the merger of the two companies.