Oil & Gas Investment

History

The Hallwood petroleum management group is known in the industry as an innovator and pioneer in the exploration and production of unconventional shale oil and gas. Since 1984 we have successfully drilled hundreds of conventional and non-conventional wells and have developed horizontal well drilling techniques and creative hydraulic fracturing technology.

In 2001, the management team consolidated the properties held by the various Hallwood operating entities and sold unconventional resource properties, which included coal bed methane in the San Juan Basin of New Mexico and Colorado to a subsidiary of Unocal for $268 million.

Hallwood then invested in the Barnett Shale, in the Fort Worth Basin of Texas, with a project that was sold to Chesapeake Energy Corporation for a total of over $535 million.

Hallwood has had a long history of acquiring, owning, operating and selling oil and gas projects.

BlueCrest Alaska

In August 2012, Hallwood closed a transaction in the Cook Inlet of Alaska whereby its affiliate BlueCrest Energy Inc. acquired Proved + Probable reserves from Pioneer Natural Resources.

In 2013, the Cosmopolitan State #1 well was completed, and the field is now in production.

A reserve report dated July 2016 prepared by independent engineers Ryder Scott shows proved undeveloped (1P) reserves of 79 million bbl. (2P) reserves of 123 million bbl. and proved, probable and possible (3P) reserves of 258 million bbl.

Total estimated current PV10 value is approximately $4 billion. Hallwood Financial owns a fully diluted 17% beneficial interest in BlueCrest.