HOUSTON, April 04, 2018 (GLOBE NEWSWIRE) -- Halcón Resources Corporation (NYSE:HK) (“Halcón” or the “Company”) today announced it has closed on the previously announced West Quito Draw Acquisition for a purchase price of $200 million and, separately, has elected not to exercise its previously disclosed Monument Draw East Option. The Company also provided an update on its recent well results in addition to its current liquidity and hedge positions.

The West Quito Draw Acquisition is comprised of 10,524 net acres and related assets in central and western Ward County, Texas and is currently producing approximately 1,200 boe/d (56% oil). Halcón plans to bring a rig to this area in the second quarter of 2018 to begin drilling 10,000 foot Wolfcamp laterals, which the Company anticipates will generate estimated ultimate recoveries (“EURs”) in excess of 1.1 MMbo of oil and a total EUR of oil and gas (2-stream) of approximately 2.2 MMboe. Including additional landing zones (Bone Spring, Avalon, etc.), Halcón estimates there are 383 potential operated horizontal locations within this acreage position. This property is approximately 47% held by production and is 91% operated with an average working interest of 72%.

Halcón has decided not to exercise its option to purchase 7,680 net acres on the eastern side of its existing Monument Draw area for $10,000/acre (the “Monument Draw East Option”). Halcón will retain ownership of the Sealy Ranch 5902H well and 160 net acres on which this ~10,000’ lateral length well was drilled.

Halcón now has ~59,152 net acres in the Delaware Basin comprised of 21,839 net acres in Monument Draw, 10,524 net acres in West Quito Draw and 26,790 net acres in Hackberry Draw. Collectively, these properties are currently producing in excess of 13,500 boe/d net to the Company (70% oil).

Floyd Wilson, CEO of Halcón, commented, “We are excited to close on this important acquisition which we have named West Quito Draw. This is a great complement to our other Ward County holdings at Monument Draw. Our technical review plus impressive results from offset operators have solidified our plan to station a drilling rig here throughout 2018 and beyond.”

“Our decision to not exercise the Monument Draw East Option was driven by our technical review of all payzones across the entire Monument Draw area plus our focus on our balance sheet and liquidity. The success of our Sealy Ranch 5902H well (30-day IP of 1,653 boe/d, 88% oil) de-risks the entirety of our southern Monument Draw area where we have hundreds of Wolfcamp and Bone Spring locations. We will continue to develop this world class asset through the balance of 2018 and beyond with at least two rigs assigned to this development program which includes both horizontal and vertical spacing tests in all intervals.”

“Our business plan, supported by a strong balance sheet, ample liquidity and our hedge book will result in significant growth for years to come while driving leverage down and keeping liquidity strong throughout.”

Operated Well Results

In Monument Draw, Halcón’s three most recently completed wells, the Sealy Ranch 7902H, 7903H and 5902H, reached an average peak 30 day rate of 1,680 boe/d (83% oil). This equates to an average 30 day rate, per 1,000 feet of lateral, of 177 boe/d which is significantly higher than the Company’s type curve of 143 boe/d per 1,000 feet of lateral. The Company plans to put an additional three wells online in Monument Draw during the second quarter of 2018.

In Hackberry Draw, Halcón’s two most recently completed wells, the Jose Katie East 1H and Jose Katie West 1H, reached an average peak 30 day rate of 1,010 boe/d (86% oil). This equates to an average 30 day rate, per 1,000 feet of lateral, of 103 boe/d which exceeds the Company’s type curve of 94 boe/d per 1,000 feet of lateral. The Company recently began flowing back the Geneva West Joanne 1H well and plans to put an additional four wells online in Hackberry Draw during the second quarter of 2018.

About Halcón Resources

Halcón Resources Corporation is an independent energy company focused on the acquisition, production, exploration and development of liquids-rich assets in the Delaware Basin.