Halcón Resources Corporation announced that it has commissioned its first compressed natural gas facility through its subsidiary, Hawk Clean Fuels. This site 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. “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,” said Floyd C. Wilson, chairman and CEO.
The company believes using CNG to displace diesel fuel used in drilling operations is not only better for the environment as it will cut CO2, NOx and SOx emissions, but should also result in a nearly 50% savings on fuel costs. Halcón also expects to build similar facilities to service its operations in the Williston Basin in 2015.
Nick D. Koch, Vice President of Operations for El Halcón, also 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.”
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.
Source: Halcón Resources