Some Bakken Halcon EURs Now Up To One Million Bbls -- Halcon -- September 3, 2014

Updates

September 6, 2014: Zeits on an Eagle Ford update, focus on Halcon.  

• The article presents Halcón’s latest (through July, 2014) well performance data in the Eagle Ford play.
• El Halcón production decline in July relative to the Q2 2014 average was expected and is driven by a trough in the completions schedule.
• Halcon’s Eagle Ford drilling program will remain HBP-driven for at least another year. Significant well cost savings are expected thereafter.
• El Halcón may prove to be a two-bench play. Speaking at an industry conference this week, Floyd Wilson made an interesting comment with regard to the multiple-bench potential of the East Texas Eagle Ford play.

As a reminder, Halcón has targeted a narrow zone immediately above the Buda top to land its laterals. Clayton Williams, another significant acreage holder in the play, has applied a different strategy, landing its laterals close to the top of the Eagle Ford. Both approaches have produced positive results.

Floyd Wilson commented that the upper Eagle Ford zone may work in addition to the lower Eagle Ford.

The slide below from Halcón's presentation indicates that a frac barrier exists between the lower Eagle Ford and upper Eagle Ford intervals.

The slide implies that fracs initiated in the lower zone may not stimulate the entire Eagle Ford column. This seems to suggest a possibility for a dual-zone development. El Halcón may prove to be a two-bench play. In the event both zones prove economic, the drilling inventory in the play may prove even more significant.

Original Post
 

Reminder: this is not an investment site. Do not make investment decision based on what you read here or think you may have read something here. Having said that, Halcon has "proved" its prospects in two (Bakken, El Halcon) of three. If the TMS proves to be another "hit," HK should do very, very well. In the notes below, I will pretty much concentrate on the Bakken only.

Presentation (PDF) here.

From the reader who sent me this:

Check out HK presentation from today. Floyd Wilson stated that EUR type curve for Fort Berthold is now 1 MILLION. They have new IP record of 4,381. Check out downspacing and IP's on pages 8 thru 11. He also stated that Williams county type curve is over 500K now.

The link in case there's a problem with the link above:

http://files.shareholder.com/downloads/ABEA-5X1N65/3443951194x0x779046/5d4253d0-351a-4926-9895-8beeaaf2b62c/Halcon_IR%20Presentation_Barclays_vFINAL.pdf 

Fascinating.

Some data points from the presentation, dated September 3, 2014:

Net acreage:

• Bakken/Three Forks: 131,000
• El Halcon: 101,000
• TMS; 316,000
• % operated: 92%
• % oil: 84%
• % proved developed: 41%

In the Bakken

• Williams County, northwest of Williston, "average" acreage
• McKenzie/Dunn counties: includes FBIR acreage, superb acreage
• Slickwater FBIR wells outperforming all wells drilled/completed with prior methods
•  development proceeding with 660' - 880' spacing

South FBIR - Sneffels Pad North experience (a nice graphic to see naming protocol)

• FB 35C-26-3H (MB), 4,081 boepd,
• FB 35C-26-5H (MB), 3,152 boepd,
• FB 35C-26-4H (TF), 2,902 boepd, 
• FB 35D-26-1H (MB), 2,088 boepd,
• FB 35D-26-2H (TF), 1,563 boepd,  

South FBIR - Sneffels Pad South experience (a nice graphic to see naming protocol)

• FB 2B-11-3H (MB), 3,243 boepd,
• FB 2B-11-4H (MB), 3,143 boepd,
• FB 2B-11-5H (MB), 3,179 boepd, 
• FB 2A-11-1H (MB), 1,138 boepd,
• FB 2A-11-2H (TF), 1,842 boepd, 

South FBIR - Blanca Pad North experience (a nice graphic to see naming protocol)

• FB 19C-18-4H (MB), 2,515 boepd,
• FB 19C-18-5H (MB), 2,911 boepd,
• FB 19D-18-3H (MB), 2,334 boepd, 
• FB 19D-18-1H (TF), 1,355 boepd,

South FBIR - Blanca Pad North experience (a nice graphic to see naming protocol)

• FB 30B-31-4H (MB), 4,381 boepd, new HI record IP,
• FB 30B-31-5H (MB), 3,551 boepd,
• FB 30A-31-1H (MB), 2,174 boepd, 
• FB 30A-31-2H (TF), 1,448 boepd,
• FB 30A-31-3H (MB), 2,675 boepd,

Efficiency of pad drilling, single well vs 4-well batch drill on pad

• $1.3 million in savings
• 25 days saved
• average spud to total depth drilled dats: 35 (2012) to 16 days (YTD 2014)

FBIR Bakken Slickwater well EURs are staggering

• previous average EUR type curve: 576K boe
• average now: 801K boe type curve
• individual wells with new EUR curves suggest trending toward 1 million boe

Williams County Bakken Slickwater well EURs are excellent and getting better

• previous average EUR type curve: 333K boe
• average now: 477K boe type curve
• individual wells with new EUR curves suggest trending toward 500 million boe, maybe more

Entire El Halcon acreage position de-risked; early stages; delineation still

TMS is still an emerging shale play