On Jun 9, 2014, Halcon Resources Corporation (HK) released an operational update. This reveals the upstream energy firm’s recent exploration and production activities in 314,000 net acres of Tuscaloosa Marine Shale (:TMS).
In TMS, Halcon Resources has drilled Horseshoe Hill 11-22H-1 well for a period of 39 days. The initial oil production rate – usually indicates the first 24 hours of well service − was 1,208 barrels per day, while the initial natural gas output rate was 1.1 million cubic feet per day.
Moreover, Halcon Resources spudded the Black Stone 4H-2 well for 28 days. The well’s completion activities will likely start this month. Halcon Resources also drilled Fassman 9H-1 well and SD Smith 1H well in TMS.
Additionally, Halcon Resources intends to drill roughly 10 to 12 operated wells and 15 to 20 non-operated wells this year, in TMS. The company will operate two rigs for drilling the operated wells.
Halcon Resources added that in order to support TMS development, it entered into a definitive contract with Apollo Global Management LLC (APO) – a New York-based investment management firm – on Jun 9. Per the deal, Halcon Resources will get roughly $400 million for further operation in TMS.
Houston, TX-based Halcon Resources primarily involves in the exploration, production, development and acquisition of oil and properties located in U.S. The company currently retains a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.
Meanwhile, one can look at better-ranked players in the oil and gas exploration and production sector like Athlon Energy Inc. (ATHL) and Encana Corp. (ECA). Both stocks sport a Zacks Rank #1 (Strong Buy).