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Halcon re-evaluates drilling in region's Utica shale



Published: Wed, March 5, 2014 @ 12:10 a.m.

Staff report

YOUNGSTOWN

Texas-based Halcon Resources Corp. is awaiting results of two wells in the Utica Shale play in eastern Ohio and western Pennsylvania before deciding whether to continue drilling in the region.

Until it gets more results, the company is turning its attention to other areas.

“We don’t have any plans to move a rig in there [Utica] at this time,” Floyd C. Wilson, chairman and CEO of Halcon said last week during Halcon Resources’ fourth-quarter and full-year 2013 earnings conference call.

“We’ve got a well flowing back and a well resting. And we’re going to just wait and see what the results are there,” he said. “They haven’t been too wonderful in the far north part of the play, and we’re just going to see how we come out with these couple of new wells. It’s no part of our spending for this year at this moment, and it’s no part of our production expectations ... for this year at this moment.”

The company has three producing wells in Trumbull County, where one additional well has been drilled, one is being drilled and three have been permitted. In Mahoning County, it has one producing Utica well in Jackson Township with two additional wells permitted.

It also has drilled wells in western Pennsylvania in Mercer, Venango and Crawford counties.

Halcon has leased about 139,000 acres in Ohio and Pennsylvania, according to a report in the Akron Beacon Journal.

On the heels of last week’s announcement of a de-emphasizing of the region for the immediate future, the company announced Tuesday, “We are in the process of drilling and completing two new wells with 100 percent slick water frac designs and plan to flow test these wells by the end of the first quarter of 2014, and the results from these two wells are expected to determine future drilling plans in the play.”

The company announced last week that it had acquired 307,000 acres in the Tuscaloosa Marine Shale in Louisiana and Mississippi, where it will now transition its focus.

The company reported poor results in its Northeast Ohio and northwest Pennsylvania acreage during the latter half of 2013, and its stock is underperforming industry peers.

Halcon announced last summer its plans for a $70 million fuel depot at the Ohio Commerce Center in Lordstown.

The facility would be used to store and distribute oil produced across the Utica Shale play to both the East Coast and Gulf Coast.

The facility was approved during a July 2013 meeting of the village’s board of zoning appeals. Construction was expected to create 50 jobs for one year, and 30 full-time jobs will be required to staff the depot.

Halcon has 11 drilling permits here and 22 in Pennsylvania, which is a relatively small holding when compared with other companies with hundreds of permits.


Comments

1billdog1(1804 comments)posted 9 months, 2 weeks ago

Elections coming and the uncertainty with tax rates on the product, Halcon decides to wait. Funny how that works and the message sent. Again this industry shows it only wants all it can get, and don't wish to share with the communities it expects to be friendly with them. Show some love Halcon, hire some locals, throw a few bucks to local schools and invite locals to see what your completed sites look like. The one on Old 82 in Vienna looks clean, neat, and well cared for. Put peoples concerns to rest, be friendly and inviting, and more people would be more inclined to be supportive of the industry.

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2James_S(268 comments)posted 9 months, 2 weeks ago

"Genie Energy"

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3JRBYoungstown(44 comments)posted 9 months, 2 weeks ago

Hopefully one less company to poison our environment and leave with little to no positive economic impact

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4UticaShale(854 comments)posted 9 months, 2 weeks ago

Halcon is emeshed in a large lawsuit with a landgroup trying to force performance on thousands of acres Halcon walked away from. Wetgas pipelines are not present up north to drain the enormous amount of wetgas. Halcon cannot sink more capital in for now but it will be a different story when Hilcorps trunk line to its new cryogenics plant in New Middletown goes online in July.
Meanwhile, right next to Halcon's wells in Mercer, Hilcorp last month took out six new permits, Chevron, two and Shell a couple. Yes Halcon the wells are shi%ty up north, great Sun Tzu line.

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5GeorgeinYoungstown(76 comments)posted 9 months, 2 weeks ago

Bust.

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6handymandave(551 comments)posted 9 months, 1 week ago

These energy companies have done enough to harm the environment already. It's time to get the alternative energy sources moving. We've polluted enough of this country with smog,unusable water sources, and damaged land. Gasoline prices are a joke too. The whole economy is going to sh** and these jerks are charging premium amounts for fuel.Enough is enough and if another damn well wasn't drilled again in the U.S ever again, it would be fine.

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7UticaShale(854 comments)posted 9 months, 1 week ago

So handyman, lead the way bro, show us how it is done............you show me how to heat your natural gas sucking butt in the winter without NG and I'll follow you?

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8bunkpatrol(113 comments)posted 9 months, 1 week ago

Careful what you ask for Utica. When enough has finally become enough, patsies like you become fuel for our fires.

Not renewable, but oh so savory...

The end of YOUR entitlement !

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