Monday, January 17, 2011

GeoResources, Incorporated -- Bought By Halcon, 2012

Now Halcon.

Presentations can be found here

Due to the increased activity regarding GeoResources, I will now add GeoResources to the sidebar at the right under "Producers." Until now, I updated GeoResources under "Other Producers."

GeoResources has announced an additional share offering and seems to be on its way to being a bigger player in the Bakken.
September 27, 2017: Halcon has sold all its non-operated assets in the Williston Basin to a private buyer.

July 11, 2017: did Halcon jump to a "worse" horse? Halcon will sell all operated assets in the Williston Basin.

January 25, 2017: Halcon sells all of its acreage in Eagle Ford; buys about 35,000 net acres in the Permian; $705 million; 

November 6, 2015: 3Q15 earnings transcript.

August 31, 2015: Richard Zeits over at Seeking Alpha. Restructuring its debt.

August 27, 2015: financial update; could be delisted; new debt structure Near the end?

July 17, 2015: Zeits on Halcon in the Eagle Ford; as good as the El Halcón is, it's still a distant second to the Bakken (at least for Halcon).  

April 21, 2015: 1Q15 production results; downspacing; two rigs in the Bakken; costs coming down. 

February 27, 2015: Richard Zeits' update. EURs of 801K in Fort Berthold. 

February 17, 2015: proved reserves, annual update:
The Company's estimated proved reserves as of December 31, 2014 were approximately 189.1 million barrels of oil equivalent (MMBoe), representing approximately 60% reserve growth.
Year-end 2014 estimated proved reserves were 82% oil, 9% natural gas liquids (NGLs) and 9% natural gas on an equivalent basis. Of total estimated proved reserves, 74% were in the Williston Basin, 22% were in the East Texas Eagle Ford ("El Halcon") and 4% were in other areas.

February 6, 2015: Zeits on Halcon. Halcon: 2 rigs in Fort Berthold area; one rig in Eagle Ford. 

December 9, 2014: Halcon to build out CNG facilities; Hawk Clean Fuels; first in Texas; will probably build CNG facilities in ND in 2015.

December 6, 2014: Zeits updates Halcon in the Eagle Ford.

November 24, 2014: Halcon could have difficulty finding economical wells in 2015 -- Filloon. 

September 8, 2014: is Halcon in trouble? Could it go below $5/share. It is down 7% today, down about 41 cents to $5.26. Down another 27 cents, and we're below that magic number of $5/share.

September 6, 2014: Halcon update in the Eagle Ford, Zeits, Seeking Alpha.

August 19, 2014: reader's observation -- Halcon moving to a 3-rig program; the fourth rig, recently in Williams County now seems to be idle. 

July 8, 2014: pre-2Q14 update on Halcon -- Richard Zeits over at SeekingAlpha. 

June 10, 2014: over at SeekingAlpha - five undervalued stocks under $10 to buy on dips -- HK, AFFX, CVGI, FORM, ODP.  [HK = 6.20; AFFX = 8.73 ; CVGI = 9.63 ; ODP = 5.56]

June 9, 2014: signs JV (to raise cash); access to Mississippi River terminal with 2 million bopd capacity; and operational update.

June 7, 2014: Richard Zeits on Halcon

May 8, 2014: Halcon share price spikes over 10%.

May 7, 2014: Is Halcon grossly undervalued?

April 14, 2014: Halcon stock surges 10%.

March 25, 2014: 1Q14 presentation / update -- Howard Weil Conference.

January 22, 2014: Richard Zeits, SeekingAlpha, update on Halcon.

November 13, 2013: for investors, over at SeekingAlpha

November 6, 2013: Richard Zeits, over at SeekingAlpha, looking at Halcon's conference call.

November 5, 2013: improvements in production coming fast and furious.

October 7, 2013: an article in SeekingAlpha by a good analyst; mentions the Bakken in passing. Focuses on HK's acreage in the Eagle Ford and the Utica. At the time of posting, HK had 150,000 acres in the Bakken; 60,000 acres in Eagle Ford but targeting for acquisition another 100,000 acres in the Eagle Ford.

September 26, 2013: SeekingAlpha article on Halcon The 30-second soundbite that I don't see in the article: a) KOG, 196,000 Bakken acres; market cap of $3.1 billion; debt $1.45 billion; total = $4.55 billion;  b) HK, 150,000 Bakken acres; market cap of $1.72 billion, debt $2.8 billion = $4.5 billion. Almost a wash.

September 13, 2013: Barclay's CEO Energy presentation.

July 15, 2013: 150,000 net Bakken acres; added 18,569 net acres from a non-operated working interest partner on its operated acreage in the New Home II area in Williams County, North Dakota for approximately $76 million.

June 10, 2013: Halcon with 135,000 net acres in the Bakken and 8 rigs.

February 25, 2013: Halcon paying royalties in Otter field; Petro-Hunt had sent the division orders.

December 10, 2012: Understanding Halcon,

December 5, 2012: update on Halcon as an investment

November 21, 2012: update on Halcon

October 22, 2012: Halcon to buy 81,000 net acres from Petro-Hunt, LLC; five operating rigs on acquired property.

August 30, 2012: bought by Halcon earlier this summer.

April 25, 2012: GeoResources -- buyout offer.

April 12, 2012: Investopedia article on GeoResources

January 27, 2012: takeover candidate.

July 6, 2011: Operational update; they have recently added a second dedicated drilling team, and will add a third rig early in 2012.

March 29, 2011: Message thread, Teegue discussion group (discussion group closed)

Additional share offering announced January, 2011:
On January 12, 2011, GEOI announced that it increased the size of its previously announced public offering from 4,700,000 shares to 5,360,000 shares, of which 4,500,000 shares will be sold by GeoResources and 860,000 shares will be sold by certain selling shareholders, at a public offering price of $25.00 per share (before underwriting discounts and commissions). GeoResources and the selling shareholders have granted the underwriters a 30-day option to purchase up to an additional 804,000 shares of common stock on a pro-rata basis.
GeoResources, Inc., announces a very aggressive drilling program for 2010. More evidence that 2010 is going to be very active. See my "perfect storm" comments elsewhere. November 12, 2009.

Original Posting

GeoResources, Incorporated, First Post: January 17, 2011

Due to the increased activity regarding GeoResources, I will now add GeoResources to the sidebar at the right under "Producers." Until now, I updated GeoResources under "Other Producers."

GeoResources has announced an additional share offering and seems to be on its way to being a bigger player in the Bakken.

The reason for the January 4, 2011, press release is to announce that GEOI has completed its first operated Bakken well in their new Williams County project area:
Our first operated Bakken well in our Williams County, North Dakota project area, the Carlson 1-11H, has been completed as a Middle Bakken producer in Section 11, Township 157 North, Range 103 West. The well was drilled on a 640 acre spacing unit and was completed with an 18 stage frac utilizing sand and resin-coated sand as the proppant. Our completed well cost was approximately $5.6 million. We own a 47.5% working interest in the well.

Being our first operated Bakken well, we chose to drill a 640 acre unit in order to minimize mechanical risk and ensure an adequate test of the Middle Bakken on our acreage block. Recent harsh winter conditions have hampered continuous operations, causing the well to be shut-in sporadically and also delaying installation of production tubing. The well is producing and has tested at a peak 24-hour production rate of approximately 685 BOPD, through a 4 ½” frac string, on a 29/64ths choke and with a 39% oil cut. With continuous production, we expect the well to continue to clean up and recover additional frac fluid and therefore expect the oil cut to improve. We are planning all future drilling to be on 1,280 acre spacing units with maximum allowed horizontal lengths and also intend to evaluate different frac methods (i.e. sand, ceramics and number of stages).

We have also drilled and cased the Siirtola 1-28-33H located in Sections 28 and 33 of Township 157 North, Range 102 West. This well is on a 1,280 acre drilling unit. We expect the well to be frac’d in February, 2011. In addition, we are currently drilling the horizontal section of the Anderson 1-24-13H, also on a 1,280 spacing unit, located in Sections 24 and 13 of Township 157 North, Range 102 West. Our working interests are approximately 34% and 35%, respectively, in these two drilling units. After the Anderson 1-24-13H reaches its total horizontal objective, the drilling rig will be moved to eastern Montana (see below); we expect to move the rig back to Williams County and pursue continuous development of our acreage in the early spring of 2011.

We are also participating with a 3.3% working interest in the Oasis Petroleum-operated Grimstvedt 5703 42-34H, which is located within our project area in Sections 34 and 27 of Township 157 North, Range 103 West in Williams County. The well is currently being completed.

To date, we have acquired approximately 24,000 net acres in the Bakken, representing a 47.5% working interest, within an AMI being developed with Resolute Energy Corporation and another industry participant. We are the operator for our group. Assuming full development on 1,280 acre spacing units, our group has a majority interest in and control of 40 units and has working interests in another 42 units. Where we have a minority interest in a spacing unit, we will attempt to acquire a majority, thereby increasing the likelihood that we will be the designated the unit operator.