Halcon Resources Corp. said an exploratory well targeting the Utica Shale has been producing more than 2,000 boe/d. The company said it plans to spend “significant time” in the play, where it has the acreage to drill up to 500 gross wells.

Halcon reported net income of $16.8 million during 2Q2013, compared with net income of $2.8 million in the year-ago quarter.

During a conference call to discuss the Houston-based company’s quarterly earnings, CEO Floyd Wilson said the Kibler 1H well, located in Trumbull County, OH, is producing 2,233 boe/d, 75% weighted toward oil and natural gas liquids (NGL). “This well is one of the top producers in the play, and we have room for about 500 wells in that area,” he said, later adding that the well’s test results “compare favorably with the better wells in the entire play, north or south. [It] tested better than all but 10 wells across the entire play.”

A second test well targeting the Utica — Allam 1H in Venango County, PA — also produced “excellent” test results, according to Wilson. “The Allam 1H is one of the more important wells in the play as far as I’m concerned, proving that the play can be commercial for us in the Northeast,” he said.

Net production for the second quarter averaged 29,165 boe/d, with 83% weighted toward oil, 12% natural gas and 5% NGLs. CFO Mark Mize said 2Q2013 production was 12% higher than 1Q2013 and was above guidance of 27,000-29,000 boe/d. Production in the previous second quarter was 3,912 boe/d.

Wilson said the company had recently restarted its leasing efforts and was making progress toward its goal of securing more than 100,000 net acres of leasehold. Halcon would deploy at least one drilling rig in the vicinity of the Kibler well for the rest of the year, he said.

Last May, industry analysts said they were disappointed with results from two test wells drilled in the Utica: Allam, and the Phillips 1H well in Mercer County, PA (see NGI, May 27). The Allam well tested at a peak rate of 6.6 MMcf/d of natural gas and 22 b/d of condensate, while the Phillips well peaked at 2.5 MMcf/d of gas, 120 b/d of condensate.

During the question and answer session with analysts, Wilson said the company held an area “that’s proven to be productive” in Ohio’s Mahoning and Trumbull counties, and in Pennsylvania’s Mercer and Venango counties, but he declined to reveal the precise number of acres the company holds in them. He said, however, that the company was drilling on 160-acre spacing. Halcon’s website says the company holds about 142,000 net acres in the Utica, in Ohio and Pennsylvania. The company operated an average two rigs in Ohio and Pennsylvania during 2Q2013.

“It’s very competitive and we’re still leasing,” Wilson said. “Again, we’re not saying exactly how much because we’re adding, but we have room for about 500 wells down there now. The next couple of years, we’ll spend all of our money in the Kibler area, except maybe late next year, we’ll start drilling a little bit in the Allam area.”

Meanwhile, unit Halcon Field Services (HFS) has struck an agreement with the Ohio Commerce Center (OCC), a mixed-use industrial site in Lordstown, OH, to build an oil storage and rail loading facility. Wilson said the facility has more than 12,000 feet of new rail and access to multiple Class I rail carriers. The terminal HFS builds would be capable of accommodating unit trains at a rate of 140,000 b/d of oil or condensate, Wilson said.