Jan 8 – Oil and gas producer Halcón Resources Corp said it would further cut its drilling and completion budget for 2015, responding to the continuing fall in oil prices.
Halcón said on Thursday it now expected to spend between $375 million to $425 million, down from its earlier forecast of $750 million to $800 million.
The midpoint of the earlier forecast on Nov. 10 was $175 million below the company’s 2014 budget plan of $950 million.
U.S. oil and gas producers have scaled back their capital spending as global crude prices have slumped more than 50 percent since June.
Crude prices have declined nearly 38 percent since Nov. 10.
The company, which operates in the Bakken in North Dakota and Eagle Ford in Texas, said it now planned to operate an average of two rigs in the Fort Berthold area and one rig in El Halcón in 2015, compared with the six rigs planned earlier.
Halcón said on Thursday it expected to produce an average of 40,000-45,000 barrels of oil equivalent per day (boepd). The company forecast production of 40,000 boepd-42,000 boepd for 2014.
Up to Thursday’s close, Houston-based Halcón’s stock had fallen more than 50 percent since Nov. 10.
(Reporting by Sneha Banerjee in Bengaluru; Editing by Sriraj Kalluvila)
This article was from Reuters and was legally licensed through the NewsCred publisher network.