The cadence and timing of well completions have been the primary drivers of Halcón’s production volumes in El Halcón. Even though the company has reduced its drilling activity in the play to just one rig, the completion calendar in April was quite busy, with five new wells turned to sales. This compares to an average of three wells per month during the preceding twelve months when Halcón was running 2-3 rigs in the play.
With five new wells brought online in April, Halcón’s May production in El Halcón will likely remain stable, even if no new wells are completed in May.
As a reminder, East Texas Eagle Ford accounts for approximately one-quarter of the company’s overall production volumes, with the Bakken being a much more significant producing area for the company. However, El Halcón is important to the stock’s valuation due to the asset’s sheer size and significant value potential.