NEW YORK May 8 Halcón Resources Corp's
development of the oil-rich Tuscaloosa Marine Shale would be
helped by a joint venture partner, but is not dependent on
outside capital, CEO Floyd Wilson said on Thursday.
The company, which produces oil in North Dakota and Texas,
has been slowly exploring the 316,000 acres it holds in
Louisiana's Tuscaloosa Marine Shale (TMS) and expects to drill
at least 10 TMS wells this year at roughly $13 million each, far
higher than wells in other shale formations.
Halcón's finances have been strained in recent quarters due
to costly missteps in the Utica shale play in Ohio, leading
Wilson to mothball development there.
The company's debt exceeds its market cap, and its cash
reserves dropped to $366,000 in the first quarter from $2.83
million in the fourth quarter. Combining the cash and a credit
facility, Halcón has access to about $452 million currently,
Bringing in a joint venture partner or soliciting an
investment of another type would help the TMS development, but
isn't crucial, Wilson told investors on a conference call.
"We are well equipped right now financially to deal with
this play," said Wilson, who formed the company in 2011 and has
publicly stated several times a goal of selling it once its
operations are appealing enough to a prospective buyer. "We've
got plenty of money right now."
(Reporting by Ernest Scheyder; Editing by David Gregorio)