Leading oilfield service provider Halliburton (HAL) has drilled the first horizontal, multistage hydraulic fracture shale gas well for independent energy firm Apache (APA) in South America.
The well, drilled in Argentina’s Neuquén Basin, is also the deepest to be executed in the continent.
Halliburton extended all major well construction and completion services for the exploration well that was drilled to a total vertical depth of 4471 meters.
As per the Halliburton spokesperson, the company's widespread knowledge and experience gained from its robust position in North America's unconventional reservoir development aided the successful completion of the project. Management believes the extensive technological know-how and an efficient manpower will reap further benefits from Argentina’s shale gas acreage, which holds the third largest estimated unconventional reserve after China and the United States.
Houston, Texas-based Halliburton offers a variety of equipment, maintenance, and engineering and construction services to the energy, industrial, and government sectors. The company operates under two main segments: Completion and Production, and Drilling and Evaluation.
We believe that Halliburton enjoys a strong competitive position within the global oilfield services markets with its broad and technologically complex product and service offerings. The company enjoys the top notch in the U.S. pressure pumping market, with significant acreage positions in the highest profile plays, such as the Haynesville, Eagle Ford shale and Bakken.
Additionally, the company remains in excellent financial health with about $1.4 billion in cash and a debt-to-capitalization ratio of around 25%. This helps Halliburton to capitalize on investment opportunities and offer strategic acquisition options, thereby further improving its growth visibility.
Considering these factors, we believe Halliburton has secured a good position for itself, and hence maintain our long-term Outperform rating.
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