HOUSTON, TEXAS, April 15, 2013 (GLOBE NEWSWIRE) -- Halcón Resources Corporation (NYSE:HK) ("Halcón" or the "Company") today unveiled a new East Texas Eagle Ford Shale play and provided a general update.

New East Texas Eagle Ford

Internally referred to as El Halcón, this new East Texas Eagle Ford Shale play has been established as the Company's fourth core area.  The play extends across several counties in East Texas.  Halcón is targeting 150,000 net acres in the play and currently has in excess of 50,000 net acres leased or under contract. 

The Company has seven wells producing, one well being completed and three wells being drilled in this play.  The average initial and 30 day rates for the producing wells have been 859 barrels of oil equivalent per day ("Boe/d", 94% oil) and 694 Boe/d (94% oil), respectively.  These seven Eagle Ford wells have an average effective lateral length of 5,632 feet and were completed with an average of 28 frac stages.  Expectations are to spud 15 to 20 wells in the play in 2013 by operating 1 to 3 rigs while spending approximately $100 million.  Halcón's early stage estimates for reserves per well are 350,000 to 400,000 barrels of oil equivalent with development costs of $7 million to $8 million. 

Floyd C. Wilson, Chairman and Chief Executive Officer, commented, "This management team knows a thing or two about the Eagle Ford Shale, and we intend to utilize our extensive knowledge of the formation to exploit this new opportunity to create shareholder value." 

General Update

The Company is fully engaged in the drilling phase of its development and is currently operating 16 rigs on its assets.  Halcón estimates it will add up to three operated drilling rigs to its program by year end 2013. 

Wilcox

Based on 3D seismic data and drilling results, the Company has decided to dedicate more resources to its 110,000 net acre Wilcox position predominantly located in Southwest Louisiana.  Halcón recently embarked on a multi-well program in this play.

The first well, the Smartt 1, is currently flowing back and was completed with 11 perforated intervals via a 3 stage frac in a 900 foot thick Wilcox section.  This well was drilled to a total measured depth ("TMD") of 11,500 feet.  Halcón anticipates a significant increase in activity in this play during the balance of 2013.

Bakken/Three Forks (read more)

Woodbine

As a result of the unveiling of the new East Texas Eagle Ford Shale play as a separate and distinct area, the Company currently has approximately 220,000 net acres prospective for the Woodbine in Leon, Madison, Grimes and Polk Counties.  Halcón expects to spud 60 to 65 gross operated wells in the Woodbine in 2013, while spending approximately $390 million.  The Company plans to keep three to five operated rigs active in the play throughout 2013.

Halcón believes it has defined the limits of Woodbine production at Halliday Field in Leon County and, based on internally developed on-going technical analysis, is confident that this area of the play has been de-risked.  In an ongoing effort to increase operating efficiencies and lower well costs, full scale pad drilling is now being utilized to develop the Halliday Field.  The combination of full scale pad drilling and underperforming wells drilled to define the edge of the field negatively impacted production by approximately 1,000 Boe/d in the first quarter of 2013.

The Company is currently evaluating other horizons within the play, and preliminary work suggests that a vertical drilling program targeting multiple zones may be prospective in Leon and Madison Counties.  In addition, the results of a 330 square mile 3D seismic survey that spans across parts of Madison, Grimes and Walker Counties should be in-house and processed by the end of 2013.  This 3D seismic survey is expected to allow Halcón to plan the effective development of a horizontal drilling program in this more exploratory area of the play.

Halcón Field Services ("HFS") continues to implement infrastructure solutions throughout the Woodbine play.  A natural gas compression and processing plant operated by HFS has throughput capacity of 20 million cubic feet per day and is expected to be put into service this week in Madison County, Texas.  Once the plant is placed into service, approximately 2 million cubic feet per day of natural gas production (333 Boe/d), most of which is currently being flared, will be processed and sold.

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