Halcón Resources' (HK) southernmost evaluation well at the company's East Texas Eagle Ford play (El Halcón) is now flowing to sales. The Jones 1H well is a 5-mile step-out to the south from the company's previously announced Stasny-Honza 1H well, which has been producing since August.
While no information on initial production rates for the Jones 1H was publicly available at the time of the submission, the fact that the well produced ~6,700 barrels of oil during the month of December (a partial month amount) is certainly encouraging. The Jones 1H was expected to have a 9,000-foot lateral landed in the Lower section of the Eagle Ford (similar to other Halcón's wells). The results of the well will likely be mentioned during Halcón's forthcoming Q4 2013 earnings call.
The Jones 1H test is fairly important to Halcón's 95,000-acre position at El Halcón and the play in general. If the well performs in-line with the company's other wells in the area, it would add to the success of the Stasny-Honza 1H test and extend the proven boundary of the play's productive sweet spot almost ten miles south from El Halcón's original core. As visible from the map above, until recently Halcón's drilling effort has been concentrated predominantly within a compact area in north-central Brazos County.
It is still premature to conclude that the Jones 1H is successful - few more months of production data will be required to draw preliminary conclusions with regard to the well's productive potential. The well will be benchmarked against the very strong performance of the Stasny-Honza, which is arguably Halcón's strongest wells in the play to date and has produced ~89,000 barrels of oil in its first five months on-line (graph below, data through December 2013).
The Jones 1H result will be highly relevant for Comstock Resources' (CRK) 21,000-acre position in the East Texas Eagle Ford play as the Jones well appears to be "on trend" with a portion of Comstock's recently acquired acreage in Burleson County (the map below). As a reminder, Comstock plans to run a one-rig evaluation program in the area in 2014 and drill ten gross operated wells.
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