Your TMS Information Source Since 2012

Have a TMS tip? Share it here and keep up with latest on our Facebook Page or Twitter!

November 2014

Halcon Pulling Out of the TMS for the Near Term

Posted by bernell on November 11, 2014

The Halcon 3rd quarter operational report has just ended. 

From our viewpoint, the news is that
Halcon is pulling out of the TMS as an operator "for the near term." 

According to Floyd Wilson, President of Halcon, they still have a lot of confidence in the play, but it is in the early days of development and is more susceptible to the low oil prices.

Charles Cusack, COO, stated there was more of a learning curve than they  had anticipated in the TMS.  They understimulated their first well and it won't be a very good one as a result.  They had some issues drilling the next couple of wells.  Questions regarding drilling near fault lines, etc... have to be considered when drilling, they've learned.

Things came together better on the Shuckrow, their 5th well, and the production there will likely be over 1,000 barrels of oil per day.

The last well drilled, the Creek Cottage West 1H, was drilled in 26 days to a depth of 21,000 foot.

The George Martens, et. al. 1H is a delineation well and has just completed fracking operations.

When a follow-up question was made for more information on the TMS, Floyd Wilson replied, "We are not a TMS operator." He went on to say that they are a two play operator at this time. (Williston and El Halcon being the two plays.)

When pressed further he said that they would continue to participate in TMS wells drilled as a non-operator.

He added later and emphasized that the play was still in the early days and that there was a lot of additional information to learn and the potential was really good, but they are in a position with leases to back off for now and wait to see what prices are going to do and see what additional learning can be done in the play.

IF other operators (Goodrich/EnCana/Sanchez/Comstock) can continue to figure out the TMS, prices for oil improves and service costs in the TMS drop, then we will likely see Halcon back operating here.

We shall see.

What do you think about it?