|Company Name:||Halcon Resources Corporation|
|Event Title:||2013 Enercom Oil & Gas Conference Transcript|
|Event Time:||03:30 PM ET|
I'll get Mark up here and let him introduce Halcon Resources. Mark Roche?
Mark A. Roche
Managing Director, Head, US Oil & Gas, Credit Agricole Securities (USA) Inc
Good afternoon. Hopefully everybody is caffined up and awake. I have got the privilege today to introduce Floyd Wilson, Chairman and CEO Halcon Resources. Halcon is Floyd's latest iteration, very focused strategy on liquids rich resource plays, Bakken, Utica. I know Halcon, I think I just came up with a new name the Batica how about that?
We've got about a billion barrels equivalent as our resource potential, 107 million barrels equivalent , now about 85% of liquid. 34% production growth year-on-year, second quarter 2013, very focused on technical approach to developing resource plays.
Floyd's reputation precedes and needless to say started out with Hugoton back in 1987-1994 timeframe, sold out to Chesapeake. Then went on to form 3TEC in the 1999 to 2003 timeframe, sold to Plains. And finally, formed and successfully build and sold Petrohawk to BHP back in 2011. So Floyd is going to come up and make presentation on Halcon. Floyd?
Floyd C. Wilson
Chairman and Chief Executive Officer
Thanks Mark. And since you named all the assets of the company I don't have to do all that as such.
So I'll flip on over to this map. We've got three core areas, we've established at Halcon, up in the Williston Basin, up in the Utica/Point Pleasant area and at El Halcón in East Texas which is the East Texas Eagle Ford shale play. We are growing these dramatically. There is a couple of data points, please skip all that. We are growing fast, we're a young company we should -- talking about each play briefly the Bakken/Three Forks up in the Williston Basin 150,000 net acres , we're running now 7 rigs up there today.
We operate most of everything we own making about 16,000 barrels a day at the average for the second quarter. And it's about half of our reserves today, what's going on up there for us, our improvement in past practices. Some improvements on the drilling sites, targeting big ones, staying in the zone and not having field strikes.
Another is and I know we do that with fear, pad drilling and batch drilling and batch fracing. We're underway almost 100% there now validating lower the cost. And then changes in the completion techniques are yielding dramatically higher IP Rates which always in the shale plays lead to higher EURs of course.
This is where the rigs are running today, 150,000 acres , 174 operated wells between wells and drilling wells we have room for lots of wells here and the spacing is going on across the Williston Basin, could turn that into an even more impressive number.
So some of the changes that we have made versus prior practices, plug and perf, come in with liners ceramic proppant. We are doing both hybrid fracs and slickwater fracs, we are having success with both. Generally speaking we're trying to put more proppant in all of our wellbores, pour more pounds of proppant per lateral foot.
We do have one Halcon pilot density project going on where we're testing 660 foot spacing. We're following all the other increased density tests that are going on and of course we have a working interest in one of the biggest ones that we have high hopes for all of that.
So these changes have led to dramatic increases in IP rates, batch drilling -- pad drilling versus batch drilling and batch fracing should lead to savings of maybe up to $0.5 million per well little less or little more hard to say that's the Bakken/Three Forks so we are going to keep growing that.