Halcon Resources slashes spending further, cuts more rigs
Halcon Resources slashes spending further, cuts more rigs
HOUSTON -- Halcon Resources Corp. has announced further reductions to its 2015 drilling and completion budget.
In November, the company announced a budget of $750-800 million and said that it intended to operate six rigs in 2015, five less than originally planned. However, Halcon has now announced a revised drilling and completions budget of $375-425 million and cut even more rigs.
Capital will be directed towards locations in the Fort Berthold area of the Williston basin and El Halcon in East Texas. In addition, the company expects to spend approximately $20 million on leasehold, infrastructure, seismic and other in 2015.
Halcon is planning to operate an average of two rigs in the Fort Berthold area and one rig in El Halcon in 2015. Halcon Resources does not anticipate any meaningful lease expirations despite this reduced rig count, the company said.
The company expects to produce an average of 40,000-45,000 boed in 2015.
Floyd C. Wilson, Chairman and CEO, commented, "Our plan is to deploy capital to assets where results indicate EURs and initial production rates higher than our published type curves. We are comfortable with our current liquidity position and we expect our strong hedge portfolio to continue generating income well into 2016. Although we are significantly hedged, the continued weakness in crude oil prices, combined with elevated service costs, calls for conservative planning. We expect to see these costs come down dramatically during 2015."
