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Halcón Reports Operating Results from Kibler Well
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YOUNGSTOWN, Ohio -- Halcón Resources Corp. released its third quarter financial results Monday along with an update of he company’s oil and gas exploration in the Utica shale play, specifically production at its Kibler 1H well in Lordstown.
After selected adjustments, the Houston-based company said it earned net income for the third quarter of $18.1 million, or 4 cents a share, compared to a loss of $900,000 in the third quarter of 2012.
Regarding the Utica/Point Pleasant shale play, where Halcón has 142,000 net acres leased or under contract in Trumbull and Mahoning counties, the company said it tested four wells and connected two wells into sales pipeline.
During the quarter, Halcón tested four wells and connected two wells into sales pipelines including the Kibler 1H well.
The Kibler well was originally scheduled to connect into Blue Racer Midstream's Warren 2 pipeline, but production from this well had to be rerouted as a result of the recent Natrium (West Virginia) gas processing plant fire, the company said. A temporary alternate route was finalized and made available for the early October 2013 start-up.
The Kibler produced an average of 358 barrels of condensate per day and 1.6 million cubic feet of gas per day into sales over the first 30 days on a restricted 24/64 choke, which is in line with internal expectations, the company said. Halcón added that production from this well should be flowing into Blue Racer Midstream's Warren 2 pipeline in the first quarter of 2014.
In addition, Halcón said it recently spudded its first offset well to the Kibler 1H, and intends to continue to optimize completion techniques on its next few wells in an effort to improve performance and recoveries. In the near-term, the company said it would limit drilling in this play to the southwest portion of its acreage in Trumbull and Mahoning counties.
Halcón has three Utica/Point Pleasant wells that are producing, five wells that have been tested and are shut-in awaiting infrastructure, one well resting and one well being drilled. The company said it expects to operate one rig in the play through the remainder of 2013 and anticipates six wells to be flowing into sales pipelines by year-end. In 2014, the company expects to operate one rig in the Utica play.
No mention was made in the earnings release of the company’s midstream subsidiary, Halcón Field Services, and its exclusive arrangement with the Ohio Commerce Center in Lordstown to develop a $70 million oil storage and rail-loading facility. Earlier this year, the company said it plans to build the terminal in phases, the first of which was expected to go into service by the end of 2013.
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Published by The Business Journal, Youngstown, Ohio.
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