Anyone know why Halcon has closed in three producing wells in the TMS. Black Stone 4H #2, Horseshoe Hill 11-22H and George Martens et al, all in Wilkinson County were closed in as of June 2017 according to the MSOGB site. Hopefully this is just temporary for maintenance or for operator changeover maybe?

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I would suspect the cost of recovery is the primary reason.  Those wells produce what is known as "Barrels of oil equivalent (BOE)."  Which means they produce a lot of gas, natural gas fluids and oil all of which must be separated for sale.  And if the major component is not oil, then it is not the most desirable product to sell.  Natural gas for instance is hovering around $3 and oil in the mid $40s for the best of grades.  It if is a lessor grade the price is less.  Natural gas liquids are also less desirable, ergo harder to market.  Also wells especially, shale wells, decline in production, that is with time they produce less and less.  "Shut in" is not near as dire as being "abandoned."  Shut in means there is still value and maybe with an increase in the price of energy, they will be reopened.  Abandoned means it is dead and gone.  After all it is all economics!

Thanks for the reply William. These wells all seem to still be good producers with 1300-2500 BOE for a full month. Unfortunately the number of days of production has been half a month or less recently. With Halcon leaving the TMS I''m hoping the new owner of these wells will get them back on line soon.


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