Today Halcon issued a press release detailing operations updates in their core areas.
"The company estimates average ultimate recovery from these two Bakken wells should be approximately 462 Mboe, which is 40% higher than the average EUR of company owned Bakken wells drilled with the previous completion technique in this area."
Well costs in the Marmon area are currently averaging approximately $9.5 million. Halcon expects these well costs to decrease by approximately 5% to 9.0 million by end of 2013"
Granted the Bakken is oilier than the Mississippian but 462 Mboe for a $9.5 million well cost is NOT better than the Mississippian economics. If we are really going to follow the type curve in the latest presentation we will be at ~400 Mboe at $3.1 million/well. If gas prices will continue to recover to 4-5 bucks then this play SHOULD be recognized as a tremendous growth generator. If the stacked pay pans out reasonably well we are really going to see the assets increase. Will the market appreciate this any time soon? Seems unlikely. EOG has been proving up jaw dropping assets in the Delware basin, and the market has not given them a dime.
Once EOG starts moving then we'll know our time will be soon.
Mr. Market is waiting for the LNG exports to really kick in. Then its a whole new demand issue, one that has never been before. They hold gas plays down while making profits in other sectors in the mean time. Interesting government insider trading scandal brewing in health care sector.
Keep those "posts" coming!
I agree with you, and that's why I will hold SD, thru to it's ultimate sale!
The Miss Lime is way cheaper to Drill and Oily enough!
With the TPG cost cutting,.. profits,.. COMING!!
SD beats earnings, big time,.. on August 6th.