Zeits has posted 12,000+boed for April vs just under 9,000 boed for last December with the best yet to come. That's a 35% increase so far in 2014 over Decembers exit rate and setting the stage to exponentially blow-out a year over year production increase. Production shaping up looking to make company 60% guidance look very conservative, all without a contribution from TMS.
Looks like HK is honing in on the potential prolific down dip sweet spot in the EL Halcon located in the southwest to southern tip of Brazos County.They have a nice well producing an impressive average 1,000 bod.
Now this ol' dog can sure enough hunt and find oil !
They Completed a Purchase and sales Agreement for East Texas on 25 February and gave up 3,861 BO for $450M all oil with the wells with effective date April 1st so all JAN, FEB, and March oil removed. That’s what you are seeing.
"On February 25, 2014, certain wholly owned subsidiaries of Halcon Resources Corporation (the "Company") entered into an Agreement of Sale and Purchase (the "Agreement") with a privately-owned company ("purchaser") pursuant to which the Company agreed to sell its Woodbine properties and related assets located in east Texas (the "East Texas Assets") to purchaser for a total purchase price of $450 million. The effective date of the transaction will be April 1, 2014 and the Company expects to close the transaction in mid-April 2014, subject to satisfaction of customary closing conditions set forth in the Agreement."
HK is just catching up the number of BOE is effectively down. On the good side they got $450M upfront.
That's true, but the comparison figures and increase I noted above only address the El Halcon field production experience. A 60% net growth guidance (net of his East Texas divestiture) has left many analysts dubious. With El Hacon also making substantial production strides it strikes a bit of a better balance with the impressive Williston development, thereby making his projected goal seem more readily achievable. Agreed? Thanks for all your data feed!