Halcón plans up to 12 wells in Tuscaloosa shale

Halcón Resources reported Wednesday that it plans to drill 10 to 12 wells this year in the Tuscaloosa Marine Shale, an oil-rich formation that covers Louisiana’s midsection.

The company also will participate in several wells that other firms will be drilling.

Halcón has about 307,000 acres leased or under contract in the formation. Roughly 77 percent of the acreage is in southwest Mississippi and the Florida Parishes, an area known as the “Eastern TMS,” according to Halcón.

Halcón plans to sell for $450 million 83,000 acres in east Texas, where average daily production in January was the equivalent of 3,800 barrels of oil. The money would allow Halcón to pay for the Tuscaloosa drilling program. But Halcón also is evaluating joint-venture options for its entire Tuscaloosa acreage and is discussing that approach with several potential partners.

“We have been working the Tuscaloosa Marine Shale from a geologic standpoint and monitoring industry activity in the play for quite some time,” said Charles E. Cusack III, chief operating officer.

The company’s strategy is to identify resource plays where the company can “meaningfully improve” the economics by using its extensive technical experience, he said.

“We believe the TMS fits that strategy, and we are excited about our position in the play,” Cusack said.

The company plans to operate two drilling rigs for the rest of 2014, and its next well will be drilled in Wilkinson County, Miss., near other producing wells.