Halcón Resources to enter Delaware Basin
HOUSTON, January 25, 2017 – In a company statement released late on Tuesday, Halcón said that had reached an agreement with Samson Exploration to purchase 84 square kilometres in Pecos and Reeves Counties in West Texas for USD 705 million.
The asset currently produces 2,600 net boepd. Halcón has also obtained an option to buy a further 61 square kilometres in neighbouring Ward county for USD 2.71 million per square kilometre.
To fund its new acquisition, the company is divesting of its property in East Texas’ Eagle Ford. It will receive USD 500 million for assets known as El Halcón, which currently produce around 6,000 boepd.
Halcón’s transition to the Delaware Basin, part of the larger Permian Basin, follows a flurry of land grabs in the area in recent weeks. Last week, ExxonMobil and Noble Energy made headlines when they solidified their positions in the Delaware.
In other news, Patterson UTI Energy announced a preliminary analysis of its fourth quarter results on Monday. The company, which plans to release its full Q4 2016 results on February 9, said that it expects revenues of USD 247 million for the quarter. It also revealed projections for an adjusted EBITDA of USD 44 million and a net loss of USD 78.1 million for the period.
Additionally, the company issued a press release saying it would offer around 15.8 million shares of common stock. The proceeds from the sale will go towards a previously announced merger with Seventy Seven Energy, if the merger is approved.
Image courtesy of Halcón