On Jun 9, 2014, Halcon Resources Corporation (HK) released an operational update. This reveals the upstream energy firm’s recent exploration and production activities in 314,000 net acres of Tuscaloosa Marine Shale (TMS).
In TMS, Halcon Resources has drilled Horseshoe Hill 11-22H-1 well for a period of 39 days. The initial oil production rate – usually indicates the first 24 hours of well service − was 1,208 barrels per day, while the initial natural gas output rate was 1.1 million cubic feet per day.
Moreover, Halcon Resources spudded the Black Stone 4H-2 well for 28 days. The well’s completion activities will likely start this month. Halcon Resources also drilled Fassman 9H-1 well and SD Smith 1H well in TMS.
Additionally, Halcon Resources intends to drill roughly 10 to 12 operated wells and 15 to 20 non-operated wells this year, in TMS. The company will operate two rigs for drilling the operated wells.
Halcon Resources added that in order to support TMS development, it entered into a definitive contract with Apollo Global Management LLC (APO) – a New York-based investment management firm – on Jun 9. Per the deal, Halcon Resources will get roughly $400 million for further operation in TMS.
Houston, TX-based Halcon Resources primarily involves in the exploration, production, development and acquisition of oil and properties located in U.S. The company currently retains a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.
Meanwhile, one can look at better-ranked players in the oil and gas exploration and production sector like Athlon Energy Inc. (ATHL) and Encana Corp. (ECA). Both stocks sport a Zacks Rank #1 (Strong Buy).
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