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Drilling Rig Fuel Costs Expected to Drop by ~50%; Significant Reduction in CO2, NOx and SOx Emissions Projected
Halcón Resources Corporation (NYSE:HK) today announced that it has commissioned its first compressed natural gas facility through its subsidiary, Hawk Clean Fuels.
This CNG facility is serving the Company’s operations in its El Halcón area in East Texas and is being used to displace diesel fuel used in drilling operations. Halcón believes using CNG to displace diesel fuel used in drilling operations is not only better for the environment, but should also result in a nearly 50% savings on fuel costs. The Company expects to build similar facilities to service its operations in the Williston Basin in 2015.
Since the discovery of El Halcón two years ago, Halcón has drilled over 80 wells in the play, and believes it has de-risked its entire 101,000 net acre position. Natural gas fueling is one of many ways the Company expects reduce costs and increase efficiencies in the play as it transitions from lease capture mode to development mode.
Floyd C. Wilson, Chairman and Chief Executive Officer, commented, “El Halcón has been a tremendous success for our Company, and others in the area, and we are always looking for new ways to lower completed well costs. Natural gas fueling is certainly a step in the right direction and can also be applied to our operations in other areas.”
Nick D. Koch, Vice President of Operations for El Halcón, stated, “We’re excited to use this technology, not only to reduce drilling costs and improve economics, but also to reduce emissions in an area whose population continues to grow. The residents surrounding our acreage have been very hospitable and it’s good to know we have their support.”
Halcón Resources Corporation is an independent energy company engaged in the acquisition, production, exploration and development of onshore oil and natural gas properties in the United States.
