Halcón Resources Provides Update on Utica Shale Activity

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From a Halcón Resources press release:
Utica/Point Pleasant 
The Company operated an average of two rigs in in Ohio and Pennsylvania during the three months ended June 30, 2013.  
It is important to note that the Kibler 1H (100% WI), located in Trumbull County, Ohio, tested at a rate of 2,233 Boe/d (75% liquids), assuming full ethane recovery, which compares favorably to the other highly productive wells in the play. This discovery well for the Utica/Point Pleasant play inTrumbull County tested at 860 barrels of condensate per day and 4.5 million cubic feet of natural gas per day (1,350 BTU). Based on composition analysis and assuming 27% gas shrink, Halcón estimates the well would produce an additional 821 barrels of NGLs per day. The Kibler 1H was drilled to a total measured depth of 14,257 feet, had an effective lateral length of 6,734 feet and was completed with 26 frac stages. The Company has significant holdings in Trumbull and Mahoning Counties, Ohio and believes there is potential to drill hundreds of wells on its acreage in the area over time. 
The process of delineating Halcón's Utica/Point Pleasant acreage position is essentially complete. The Company has finished drilling its first nine wells and is evaluating results. There is currently one Utica/Point Pleasant well producing, four wells that have been tested and are shut-in awaiting infrastructure, two wells being tested and two wells resting. Halcón expects to operate a minimum of one rig in the play throughout the remainder of 2013 and anticipates seven of the nine wells drilled to be flowing into sales pipelines by the end of the year. 
The Company currently has approximately 142,000 net acres leased or under contract. As previously disclosed, Halcón is focused on building an inventory of approved/permitted multi-well pads in preparation for a full scale development program and will target lateral lengths between 7,000 and 9,000 feet where possible. 
The Company's midstream subsidiary, Halcón Field Services (HFS), has entered into an exclusive arrangement with the Ohio Commerce Center(OCC), a 516 acre mixed used industrial site located in Lordstown, Ohio, to develop an oil storage and rail-loading facility. HFS and the OCC have obtained a variance from the Village of Lordstown to permit the planned facility.  OCC has over 12,000 feet of recently installed loop track and direct access to Class 1 rail service, making it an ideal location for low cost rail services to support the rapid production growth expected in the northern tier of the Utica/Point Pleasant play.  HFS plans to build the terminal at the OCC in phases, the first of which is expected to go into service by the end of 2013.  At scale, HFS anticipates the facility would accommodate unit train loads at the rate of 140,000 barrels of oil or condensate per day.  
In addition, HFS continues to engage in discussions for a potential joint venture to develop a high pressure, rich gas gathering system and scaled cryogenic gas processing for Halcón's oil and gas assets in Ohio and Pennsylvania. This joint venture would allow for enhanced third-party volumes and shared capital costs for HFS' infrastructure build out.
Read the rest of the press release here.

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