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The Dirt on the Permian Basin: Hot or Not?

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Part 4
The Dirt on the Permian Basin: Hot or Not? PART 4 OF 13

Why Halcon Is Pursuing More Delaware Opportunities

Halcon Resources’ latest Permian deal

Halcon Resources recently closed an acquisition of 3,634 net acres in Pecos County in the Delaware Basin for $88 million. Current production from these assets is ~790 Boepd (barrels of oil equivalent per day).

Why Halcon Is Pursuing More Delaware Opportunities

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After exiting bankruptcy in September 2016, Halcon has swooped in and started amassing acreage positions in the Delaware Basin since January 2017. The company has purchased nearly 21,000 net acres in the Pecos County in the Delaware Basin for $705 million.

The company also entered into an option agreement to purchase an additional 15,040 net acres in Ward County, Texas, from a private operator. The company expects to exercise its option to acquire this acreage position on or before the option expiration date of December 31, 2017.

Another company that recently acquired acreage positions in the Pecos and Ward counties was Callon Petroleum (CPE). (You can read more about this acquisition in market Realist’s Callon Petroleum Makes Its First Delaware Basin Acquisition.)

A press release from Halcon Resources noted that the company continues to add additional acreage in and around its existing acreage positions in Pecos and Ward Counties. Halcon currently has almost 42,000 net acres in the Delaware Basin that are either acquired or under contract. Its Delaware Basin assets are currently producing ~4,500 Boepd.

Halcon plans to continue to run two rigs in the Delaware Basin for the remainder of 2017. It will begin completion activities in its first Pecos County well in June 2017.

The company plans to pursue additional expansion opportunities in the Delaware Basin via funding from its planned Williston Basin non-operated asset sale and borrowings on its revolving credit facility.

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