Hawkwood Energy LLC, Denver, has reached a definitive agreement for a wholly owned subsidiary to acquire oil and gas properties in East Texas from subsidiaries of Halcon Resources Corp. for $500 million as the seller shifts its focus to the Delaware basin of West Texas.
Hawkwood Energy East Texas LLC will acquire 81,000 net acres, mostly in Burleson and Brazos counties. Gross production is 9,200 boe/d, 80% oil, from 170 wells completed in the Cretaceous Eagle Ford formation. The leases are 80% held by production and 90% operated, generally contiguous and adjacent to Hawkwood’s existing East Texas acreage.
Gross production from the combined assets will be 14,500 boe/d, 83% oil, from 260 wells completed in the Eagle Ford and Cretaceous Woodbine, Austin Chalk, and Buda formations.
Hawkwood will hold more than 180,000 net acres and 1,000 drilling locations with Eagle Ford and Woodbine targets.
Halcon Resources, which reorganized under voluntary bankruptcy last year, recently signed two Delaware basin deals (OGJ Online, July 29, 2016).
It agreed to acquire 20,748 net acres in Pecos and Reeves counties from a private operator for $705 million. And it entered an option agreement to acquire up to 15,040 net acres in Ward County from a private operator for $11,000/acre.
In Pecos and Reeves counties, net production is 2,600 net boe/d. The acquired acreage includes 495 gross locations in the Permian Upper Wolfcamp A and B and 771 gross locations in the Permian Lower Wolfcamp; First, Second, and Third Bone Springs; and Avalon.
In Ward County, Halcon is drilling a commitment well on the southern of two tracts and has until June 15 to exercise the option on that tract, covering 6,720 net acres, or on the entire option area.
If Halcon exercises the option only on the southern track, it will be required to pay $5 million and drill a commitment well on the northern track by Sept. 1 to earn an option to acquire the acreage by Dec. 31.