"Halcón has established the TMS as a third core area. In aggregate, the Company currently has approximately 307,000 net acres leased or under contract in the play. Approximately 77% of the acreage is located in
Southwest Mississippi and the Louisiana Florida Parishes, also known as the "Eastern TMS."
The proceeds from the pending sale of non-core assets are expected to provide Halcón the ability to internally fund the TMS program. However, the Company is evaluating joint venture options for its entire TMS position and is engaged in ongoing discussions with several potential partners.
Halcón employs an experienced exploration staff that has been working the TMS for more than a year with access to hundreds of well logs and core data from a number of wells. As a result, geologic mapping from these efforts have allowed for the acquisition of land within a well-defined area believed to be the geologic core.
The Company plans to operate an average of 2 rigs for the remainder of 2014 and spud 10 to 12 gross operated wells in the TMS. Halcón also expects to participate in several non-operated wells in 2014. Expectations are to spud the next operated well in March of 2014 near producing TMS wells in
Wilkinson County, Mississippi. No changes to guidance are being made as a result of this announcement as TMS drilling activity was incorporated into the Company's 2014 business plan and budget. Halcón plans to spend approximately 10% of its drilling and completions budget in the play in 2014, subject to reduction dependent upon ongoing negotiations with potential joint venture partners.