Halcon operated an average of two rigs in the TMS during the second quarter and expects to spud approximately eight operated wells in the play during the second half of 2014, while running two rigs. The Company is a non-operated partner in several TMS wells that were spudded during the first half of 2014 and are performing in line with expectations. Halcon plans to participate in 10 to 12 non-operated wells in the second half of 2014.

As previously disclosed, the Company's first operated eastern TMS well, the Horseshoe Hill 11-22H-1 (92% WI -- 7,060' effective lateral), located in Wilkinson County, Mississippi, achieved a 24-hour average initial production rate of 1,548 Boe/d, assuming full ethane recovery.

Completion operations are ongoing on Halcon's second operated TMS well in Mississippi, the Black Stone 4H-2 (87% WI -- 5,400' drilled lateral), located in Wilkinson County. All 22 frac stages were successfully pumped; however, the Company encountered fill during clean out operations near stage 10. Halcon was only able to partially clean out the fill and additional clean out operations are underway. Flow back is expected to commence once clean out operations are finalized.

The Fassman 9H-1 (84% WI -- 6,030' drilled lateral), located in Wilkinson County, Mississippi, is awaiting completion. This well is located three miles west of the Goodrich Petroleum-operated Crosby 12H-1 well and was landed in the same lower target interval. The 6,030' lateral was drilled in approximately 6.5 days, or 918' per day, which is a record in the play for the Company.

The SD Smith 1H (98% WI -- 7,556' drilled lateral), located in Wilkinson County, Mississippi, is also awaiting completion. A pilot hole was drilled with a full state-of-the-art logging suite and recovered 200' of conventional core. This well was drilled in 33 days (spud to TD), after adjusting for the time it took to drill the pilot hole.

Halcon recently spudded the Shuckrow 10H-1 (87% WI), located in Wilkinson County, Mississippi, and is planning a 6,700' lateral for this well.

The Company expects to spud the George Martens 1H (97% WI), located in Wilkinson County, Mississippi, in the next week and is planning a 7,000' lateral for this well.

The industry continues to make progress delineating the play. Economics are expected to improve over time as drill days come down, competition for services increases and efficiencies are realized. Halcon continues to believe it can reduce the number of drilling days by 15% to 20% on average by year-end.

The Company has approximately 315,000 net acres leased in the TMS

For the most part sounds encouraging, I think.  I do not speak stock broker or market so I am not quite sure. 

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"Performing in line with expectations" is a rather meaningless statement without knowing what Halcon was expecting.

They should start a subsidiary company in poultry processing plants and farms to compete with Tyson Foods.  They could use these strategies in public announcements of growth by inventory product on hand showing a tremendous increase each quarter by counting the eggs laid by hens as live birds to be processed with an increasing demand for product to meet the needs of the consumer.  It should look good on paper and prop up the value of the stock when they go public.  "There is a sucker born every minute." - P.T. Barnum

i don't have a dog in this hunt, but, when i see completion results reported as:

As previously disclosed, the Company's first operated eastern TMS well, the Horseshoe Hill 11-22H-1 (92% WI -- 7,060' effective lateral), located in Wilkinson County, Mississippi, achieved a 24-hour average initial production rate of 1,548 Boe/d, assuming full ethane recovery.

i wonder, why report "assuming full ethane recovery"? 

why would you want to report results with full ethane recovery in a market where, imo, you'd rather reject from processing as much of it as you could and, rather, sell it as part of the gas stream?

the only thing that comes to my mind is that by assuming full ethane recovery, and, by assuming an average bbl price for recovered ngl's, regardless of the bbl's actual, fractional makeup, you could turn straw into gold somewhat like rumpelstiltskin.

note: i hold this entity and his previous ones in great regard as to value creation. i guess that's why i felt the need to question what i perceive to be weasel words in a/the well's completion report.

 "assuming full ethane recovery"?  This was a PR spin by HK, to make the well look better than it was.  Goodrich has reported that the portable NGL processors on site, only process 50% of the NGLs and the rest are just flared.  So when NGL plants are built in the TMS, then you will get full ethane recovery. 

This is what I post on yahoo's HK forum page on June 9. 

You do realize that HK missed on 3 frac stages and then played games on the IP announcement. Using GDP's higher standards the IP on HK's well is 1391/bbl and its only 87% oil versus the Blades 98% oil and HK really had to open the choke from 14/64 for the Glades wells versus 19/64 for the HH well. While the HH well is good, its no barn burner

TC:

Yes sir, that is kinda what I was thinking as well.  A good amount of spin in that relation. 

Look back to November when their stock took a big hit with the Utica results. Words seem to play a part on Wall Street more than production figures. I can't see the reason for the sell off for only a small portion of leasehold that turned out to not be in the sweet spot.

They are taking a minor beating today in the market and GDP is getting hammered.  The lack of results, on a timed or interval basis, will hurt these companies market value due to them really pumping up the TMS. 

It is sad to see this.  

if they're using field processing equipment, my guess is that they're using a j-t plant.

see wiki article:

http://en.wikipedia.org/wiki/Joule%E2%80%93Thomson_effect

j-t's won't knock out much, if even any ethane.

Aggressive PR tends to cause drops in share price, at least in the short term, when not supported by operational results.  All the TMS operators will likely take a hit.  With the possible exception of ECA I don't think any of them will change their development plans.  I expect they will drill all the wells announced for the remainder of 2014. 

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