Halcon

Houston-based independent Halcon Resources Corp. announced Wednesday that the U.S. Bankruptcy Court for the Southern District of Texas confirmed its Chapter 11 reorganization plan.

Two Houston-based exploration and production companies have filed for Chapter 11 bankruptcy protection after launching strategic reviews that found restructuring would be the best option as the industry confronts another volatile commodity cycle.

Less than a month after its CEO stepped down, the new head of Halcon Resources Corp. said the board plans to review financial and strategic options, including a potential sale or merger.

Halcon Resources Corp. agreed to sell its remaining nonoperated assets in the Williston Basin to an undisclosed buyer for $104 million, completing the company’s nine-month transformation into a Permian Basin pure-play operator.

Houston independent Halcon Resources Corp. has agreed to take $1.4 billion for its Williston Basin properties to focus exclusively on the Permian Basin’s Delaware formation in West Texas.

Halcon Resources Corp. is entering the bustling Delaware Basin through a deal to acquire 20,748 net acres in Pecos and Reeves counties, TX, in the southern portion of the play, which is a sub-basin of the Permian. Simultaneously, the company is selling up in the Eagle Ford.

Halcon Resources Corp. said late Tuesday it would revive its drilling program in its El Halcon area of the Upper Eagle Ford Shale in East Texas early next year, citing firming oil prices and encouraging results from offset wells in the region as part of its decision.

Another day, another bankruptcy in the exploration and production (E&P) sector, more evidence of the financial pain inflicted by the oil and gas commodity price rout.

Halcon Resources Corp. dropped down to one operated rig in the Williston Basin during the first quarter, but it could deploy another in East Texas if crude oil prices recover. Production has declined but so have operating expenses.