Random Update On A 3-Well Halcon Miller Pad Northwest Williams County -- August 19, 2014

Update

August 19, 2014, 7:02 p.m. CDT: a reader provides update --

Halcon has chosen to focus their limited CAPEX dollars in the Fort Berthold area because these are by far the best they own with recent wells far exceeding the 801K EURs which they previously stated.

(million barrel wells !!!)

Roughly 50% of all their CAPEX is in Fort Berthold, with 40% in Eagleford, and 10% in TMS.

They like Williams County a lot, but at this time growing revenues and free cash flow is important. Halcon plans on selling entire company in next few years they need cash to de-risk their assets to sell. Actually Halcon had a presentation today you can access on their website, they are one of the best operators in the business. http://www.oilandgas360.com/togc-webcast/hk/

A huge comment; great comment. Thank you. Back to one-million-bbl EURs from an independent source. Regular readers are aware of the million-bble-EUR discussion. Mike Filloon was one of the first to note it publicly in a non-fee / non-subscription posting.
 

Original Post
 

A reader posted this as a comment; to make it google-searchable, I moved it up here, maybe some readers can provide additional insight:

The reader noticed that HRC (Halcon) was just back in the area drilling a couple of Miller wells that were spudded late last year, the rig is now gone. 

In the HRC's 2Q14 report (at their website) they said they were sending a rig to drill "two" wells in Williams county in July (the Miller wells). 

They have finished those wells, but their rig is nowhere else in Williams county. They still have several wells to drill in the county with permits expiring soon. In the report Halcon they were also going from 4 drilling rigs to 3 drilling rigs. With the Miller wells complete, they are down to 3 rigs, all in Dunn county.

Last year they petitioned the NDIC to expand leases from 1280 to 2560 spacing units to drill up to 31+ wells on the new spacings...no activity. I know they "may" drill...but when?

What are they up to? Are they going to let the permits expire? Will they ever get back to Williams county in the near future?

I noticed that Crescent Point, Continental and Hess are active in the area.

I don't know Halcon's plans, but maybe another reader has some insight.

I assume the Miller wells referenced above are (3-well pad, 12-157-101, Otter field, Williams County):

• 26342, 2,706, HRC, Miller 157-101-12D-1-2H, Otter, t2/14; cum 143K 7/17;
• 26341, 659, HRC, Miller 157-101-12D-103H, t9/14; cum 133K 7/17;
• 27058, 875, HRC, Miller 157-101-12D-104H, t9/14; cum 125K 7/17;

I don't often see permits expire; they are easily renewable through the NDIC for a nominal fee ($100) and a cordial letter. Interestingly, I have seen some one example of an operator (Petro-Hunt) requesting an approved 2560-acre spacing permit to be changed to 1280 acres at a later date.