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Halcon Resources Announces Fourth Quarter and Full Year 2012 Financial Results and Provides Operational Update

Halcon Resources Announces Fourth Quarter and Full Year 2012 Financial Results
and Provides Operational Update

             2012 Average Net Daily Production Increases by 128%

                         Proved Reserves Grow by 417%

       Bakken/Three Forks and Woodbine Well Results Continue to Improve

HOUSTON, TEXAS, Feb. 27, 2013 (GLOBE NEWSWIRE) -- Halcón Resources Corporation
(NYSE:HK) ("Halcón" or the "Company") today announced its fourth quarter and
full year 2012 financial results and provided an operational update.

Fourth Quarter and Full Year 2012 Financial Results

Halcón generated revenues of $124.7 million for the quarter ended December 31,
2012, compared to $25.6 million for the quarter ended December 31, 2011.
Revenues for the full year 2012 were $247.9 million, compared to $103.7
million for the full year 2011. The increases were primarily attributable to
incremental production volumes related to the acquisitions of GeoResources,
Inc. ("GeoResources"), certain producing and undeveloped assets in East Texas
("East Texas Assets") and two entities owning certain producing and
undeveloped assets in the Williston Basin ("Williston Basin Assets").

Production for the three months and full year ended December 31, 2012
increased by 349% and 128% to 18,348 barrels of oil equivalent per day (Boe/d)
and 9,404 Boe/d, respectively, compared to the same periods of 2011. Fourth
quarter 2012 production was comprised of 75% oil, 6% natural gas liquids
(NGLs) and 19% natural gas. The Company divested approximately 500 Boe/d of
certain conventional assets in South Louisiana in November 2012, which
impacted quarterly production by approximately 150 Boe/d.In addition, due to
gas infrastructure constraints, approximately 6 million cubic feet per day of
net gas production (primarily related to the recently acquired Williston Basin
Assets) is currently being flared.The gas flaring impacted production in the
fourth quarter 2012 by approximately 300 Boe/d.

Taking into account the effect of hedges, Halcón realized 104% of the average
NYMEX oil price, 44% of the average NYMEX oil price for NGLs and 102% of the
average NYMEX natural gas price during the fourth quarter 2012.Similarly, for
the full year 2012, the Company realized 99% of the average NYMEX oil price,
44% of the average NYMEX oil price for NGLs and 129% of the average NYMEX
natural gas price.

After adjusting for selected items primarily related to the non-cash impact of
derivatives and acquisition and merger transaction costs (see Selected Item
Review and Reconciliation table for additional information), Halcón reported
net income of $10.5 million, or $0.02 per diluted share, and a net loss of
$4.0 million, or $0.03 per diluted share, for the three months and full year
ended December 31, 2012, respectively.Before adjusting for selected items,
the Company reported a net loss available to common stockholders of $8.0
million, or $0.04 per diluted share for the quarter and $142.3 million, or
$0.91 per diluted share for the year.

Cash flow from operations before changes in working capital, after adjusting
for selected items (see Consolidated Statements of Cash Flows and Selected
Item Review and Reconciliation table for additional information), was $55.5
million, or $0.17 per diluted share, and $91.2 million, or $0.38 per diluted
share, for the fourth quarter and full year 2012, respectively.Prior to
adjusting for selected items, Halcón reported cash flow from operations before
changes in working capital (see Consolidated Statements of Cash Flows for a
reconciliation to net cash provided by operating activities) of $42.6 million,
or $0.13 per diluted share, and $54.9 million, or $0.23 per diluted share, for
the three months and twelve months ended December 31, 2012, respectively.

After adjusting for selected items (see Selected Operating Data table for
additional information), lease operating expense for the three month and
twelve month periods ending December 31, 2012 decreased by 45% and 28% to
$11.75 per Boe and $14.36 per Boe, respectively, versus the three month and
twelve month periods ending December 31, 2011.During the fourth quarter,
total operating costs per unit (including lease operating expense, workover
and other expense, taxes other than income and general and administrative
expense), after adjusting for selected items (see Selected Operating Data
table for additional information), decreased by 27% to $33.12 per Boe,
compared to the same period of 2011. After adjusting for selected items (see
Selected Operating Data table for additional information), total operating
costs per unit for 2012 and 2011 were $37.05 per Boe and $37.41 per Boe,
respectively.

Floyd C. Wilson, Chairman and Chief Executive Officer, stated, "Halcón has
been public for about a year now and we have built an oil company with core
assets in some of the most prolific established and emerging unconventional
resource plays in the lower 48.Our balance sheet is healthy and we are well
positioned to execute on our business plan.We are in the early innings of
implementing efficiencies and performance enhancements in our core areas with
a focus on growing production, reserves and cash flow."

Liquidity

The Company recently closed an additional $600 million in aggregate principal
amount of its 8.875% senior unsecured notes due 2021 in a private offering at
an issue price of 105% of par, which yielded net proceeds to Halcón of
approximately $619.5 million.A portion of the proceeds were used to repay
outstanding indebtedness under the Company's senior secured revolving credit
facility.

As of December 31, 2012, and pro forma for the January 2013 notes offering,
Halcón had liquidity of approximately $1.2 billion, which consisted of $324.0
million in cash and $850.0 million of borrowing capacity available on its $1.5
billion senior secured revolving credit facility.

Proved Reserves

The Company's estimated proved reserves as of December 31, 2012 were 108.8
million barrels of oil equivalent (MMBoe), which represents an increase of
417% over the prior year.Year-end 2012 estimated proved reserves were 80%
oil, 5% NGLs and 15% natural gas on an equivalent basis.

The present value of Halcón's estimated future oil and gas revenues, net of
estimated expenses, discounted at an annual rate of 10% (PV10) is
approximately $2.3 billion.In comparison, the standardized measure is
approximately $1.95 billion; the difference is attributed to the estimated
future income tax expense discounted at 10%. Proved developed reserves account
for 47% of total estimated proved reserves.A summary of year-over-year
changes in estimated proved reserves is as follows:

Proved Reserve Reconciliation    Oil (MBbls) Gas (MMCf) NGL (MBbls) Total MBoe
As of 12.31.11                   12,371      40,054     2,010       21,057
Extensions, discoveries and      11,691      6,742      352         13,167
additions
Purchases                        66,240      71,560     3,433       81,600
Sales                            (1,789)     (2,025)    --         (2,127)
Production                       (2,415)     (4,554)    (268)       (3,442)
Revisions of previous estimates  1,280       (15,632)   (144)       (1,470)
and pricing
As of 12.31.12                   87,378      96,145     5,383       108,785

The Company's estimated proved reserves at December 31, 2012 were prepared by
the independent reserve engineering firm Netherland, Sewell and Associates,
Inc. (NSA) in accordance with Securities and Exchange Commission guidelines.

Operational Update

The drill-bit continues to spin to the right in all of the Company's core
plays, plus a few others.Halcón currently has 15 operated rigs running and
expects to add several operated rigs by year-end 2013.

Bakken/Three Forks

The Company currently has working interests in approximately 130,000 net acres
prospective for the Bakken and Three Forks formations in the Williston
Basin.Halcón plans to operate 6 to 8 rigs and spud 65 to 75 gross operated
wells with an average working interest of approximately 63% in 2013.The
Company also expects to participate in 90 to 100 gross non-operated wells in
2013 with an average working interest of 10% to 12%.Halcón is focused on the
higher internal rate of return (IRR) areas and anticipates spending
approximately $475 million on drilling and completions in the Williston Basin
in 2013. 

Pro forma for the Williston Basin Assets acquisition that closed on December
6, 2013, 31 wells have been put online in the play since October 1, 2012 (17
wells in the Fort Berthold area, 2 wells in the Marmon area, 10 wells in the
New Home II area and 2 wells in E. Montana).

Of the 17 wells put online in the Fort Berthold area, 8 of them were Bakken
completions and 9 of them were Three Forks completions.The average initial
and 30 day rates for the applicable Bakken wells were 1,544 Boe/d (83% oil)
and 780 Boe/d (84% oil), respectively.These eight Bakken wells have an
average effective lateral length of 10,020 feet and were completed with an
average of 26 frac stages.Similarly, the average initial and 30 day rates for
the applicable Three Forks wells were 1,472 Boe/d (84% oil) and 823 Boe/d (82%
oil), respectively.These nine Three Forks wells have an average effective
lateral length of 9,987 feet and were completed with an average of 25 frac
stages.

One Bakken well and one Three Forks well was put online in the Marmon
area.The initial and 30 day rates for the Bakken well were 836 Boe/d (91%
oil) and 505 Boe/d (96% oil), respectively.This Bakken well had an effective
lateral length of 10,023 feet and was completed with 25 frac stages.The
initial and 30 day rates for the Three Forks well were 531 Boe/d (100% oil)
and 245 Boe/d (90% oil), respectively.This Three Forks well had an effective
lateral length of 9,872 feet and was completed with 25 frac stages.

All ten wells put online in the New Home II area were Bakken completions.The
average initial and 30 day rates for the applicable wells were 646 Boe/d (90%
oil) and 282 Boe/d (88% oil), respectively.These Bakken wells have an average
effective lateral length of 9,742 feet and were completed with an average of
30 frac stages.

The Company does not plan to drill any wells in Eastern Montana in 2013, but
the average initial and 30 day rates for the applicable Bakken wells in
Eastern Montana put online since October 1, 2012 were 408 Boe/d (88% oil) and
193 Boe/d (79% oil), respectively.

There are currently 95 Bakken wells producing, 6 Bakken wells being completed
or waiting on completion and 5 Bakken wells being drilled on Halcón's operated
acreage.Similarly, there are currently 28 Three Forks wells producing, 2
Three Forks wells being completed or waiting on completion and 3 Three Forks
wells being drilled on the Company's operated acreage.

Halcón is in the process of optimizing all of its Williston Basin
activities.Numerous drilling and completion modifications intended to improve
economics are being implemented and should begin to yield benefits in the
second quarter of 2013.Specifically, on the drilling side, the Company has
begun full scale pad drilling and plans to preset surface casing, implement
batch drilling on intermediate and production intervals, modify motor/bit
configurations in curves and laterals, utilize a combination of geosteering
tools/practices and mudlogging and incorporate new high efficiency skid
capable AC rigs. On the completion side, Halcón expects to utilize core and
log analysis in all areas to develop a petrophysical model, geomechanics and
integrated reservoir simulation to design and optimize its completion
techniques.Increasing proppant per stage to 120,000 pounds from 100,000
pounds, changing the fluid design to 28 pound from 35 pound XL gels,
increasing stage density to 30 from 25, eliminating blast joints in favor of
swell packers for positive isolation, conducting perf and plug completion
projects in the Fort Berthold and Marmon areas and incorporating frac strings
for improved safety and flow back operations are examples of other measures
being taken to increase recoveries.

Woodbine

The Company currently has approximately 235,000 net acres leased or under
contract across East Texas that are prospective for the Woodbine, Eagle Ford
and other formations.Expectations are to spud 75 to 85 gross operated wells
in 2013 with an average working interest of approximately 90%.Halcón plans to
operate five to seven rigs in the play throughout the year and anticipates
spending approximately $490 million on drilling and completions.Efforts will
be focused on developing acreage in Leon, N. Madison and Brazos Counties in
2013.However, a 330 square mile 3D seismic survey is underway and covers the
more exploratory area of the play in Madison, Grimes and Walker Counties.In
addition, the Company intends to spud its first horizontal Woodbine well in
Polk County in the second quarter of 2013.

Halcón has put nine wells online in the play since October 1, 2012.The
natural gas being produced from all these wells is currently being
flared.Based on the amount of natural gas being flared, the Company estimates
that the oil being produced from each well accounts for more than 90% of the
total hydrocarbon volume.

Six of the wells are located in Leon and Northern Madison Counties have an
average effective lateral length of 6,246 feet and were completed with an
average of 22 frac stages.The average initial and 30 day rates for the
applicable wells were 948 Boe/d and 388 Boe/d, respectively.Of these six
wells, the Keeling 1H in Leon County is performing the best and had an initial
rate of 1,407 Boe/d and a 30 day rate of 749 Boe/d.This well was drilled to a
total measured depth of 15,897 feet with a 6,300 foot effective lateral
section and was completed with a 25 stage frac.

Of the three remaining wells, two are located in Brazos County and have an
average initial rate of 1,463 Boe/d.These two wells have an average effective
lateral length of 6,143 feet and were completed with an average of 31 frac
stages.Only one of the wells in Brazos County has been producing for at least
30 days and has an average 30 day rate of 724 Boe/d.The most recent well
completed in Brazos County, the Coyote 1H, had an initial rate of 1,230
Boe/d.This well was drilled to a total measured depth of 14,333 feet with a
5,944 foot effective lateral section and was completed with a 30 stage
frac.The other well is located in the more exploratory area of the play where
the 3D seismic survey in underway.

There are currently 29 wells producing, 11 wells being completed or waiting on
completion and 5 wells being drilled across the Company's operated acreage.

Halcón continues to modify its Woodbine drilling and completion practices in
an effort to increase recoveries while reducing costs.To date, the Company
has reduced hole size in the curve to 8.75 inches from 9.875 inches and
eliminated intermediate casing where applicable, which results in a well cost
reduction of approximately 15%.In addition, Halcón has increased the amount
of proppant placed while decreasing the total volume of fluid and the
associated pump time. The Company also continues to adjust its cluster
configuration and count by area. Initial results are encouraging with jet
lift assemblies providing for higher initial flowback rates and additional
flow control. Looking ahead, Halcón anticipates costs will decline further as
it continues to exploit opportunities for batch drilling and brings electric
power to new and existing locations.

Halcón Field Services (HFS) is in the process of building infrastructure in
the play capable of handling gas, NGLs and produced water.More than 50 miles
of pipeline are planned and a processing plant with residue gas and liquids
takeaway capacity is expected to be in service by the end of the first quarter
2013.

Utica/Point Pleasant

The Company currently has approximately 130,000 net acres leased or under
contract in the play and expects to spud 20 to 25 gross wells on its operated
acreage in 2013 with an average working interest of approximately 91% and a
drilling and completions budget of approximately $200 million.The first ten
wells will be drilled to delineate acreage, which will allow for a more
focused approach to wells drilled in the second half of 2013.Halcón currently
operates two rigs in the play and expects to add one to two additional rigs by
year end.

The Allam 1H (TMD 14,300', 5,580' lateral) in Venango County, Pennsylvania and
the Phillips 1H (TMD 12,411', 5,360' lateral) in Mercer County, Pennsylvania
have each been drilled and completed with a 21 stage and 20 stage frac,
respectively, and are currently resting for 60 days.Production tests are
expected to occur on these two wells in the second quarter of 2013.

There are currently two wells resting after completion, two wells being
completed or waiting on completion and two wells being drilled.HFS continues
to identify and implement infrastructure solutions in the play.Third party
infrastructure solutions will be utilized if available and competitive;
however, consistent with the HFS strategy, a multi-modal approach to building
and owning infrastructure is underway.

Tuscaloosa Marine Shale ("TMS")

The Company currently has approximately 75,000 net acres prospective for the
TMS in Louisiana.The first well drilled, the Broadway H1 in Rapides Parish,
is currently being completed with a 21 stage frac.The well was drilled to a
total measured depth of 19,442 feet with a 5,192 foot effective lateral
section.

In late January, Halcón spud a stratigraphic test well, the Lambright, located
16 miles northwest of the Broadway 1H in Rapides Parish.This vertical test
found the zone too thin for commercial production.

The Company intends to review completion results of the Broadway H1 prior to
implementing a development strategy.

Conference Call and Webcast Information

Halcón Resources Corporation (NYSE:HK) has scheduled a conference call for
Thursday, February 28, 2013, at 10:00 a.m. EST (9:00 a.m. CST). To participate
in the conference call, dial (877) 810-3368 for domestic callers, and (914)
495-8561 for international callers a few minutes before the call begins and
reference Halcón Resources conference ID 96884175. The conference call will
also be webcast live over the Internet on Halcón Resources' website at
http://www.halconresources.com in the Investor Relations section under Events
& Presentations.A telephonic replay of the call will be available
approximately two hours after the live broadcast ends and will be accessible
until March 7, 2013.To access the replay, dial (855) 859-2056 for domestic
callers or (404) 537-3406 for international callers, in both cases referencing
conference ID 96884175.

About Halcón Resources

Halcón Resources Corporation is an independent energy company engaged in the
acquisition, production, exploration and development of onshore oil and
natural gas properties in the United States.

For more information contact Scott Zuehlke, Vice President of Investor
Relations, at 832-538-0314 or szuehlke@halconresources.com.

The Halcon Resources logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=11256

Forward-Looking Statements

This release may contain forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended.Statementsthat are not strictly
historical statements constitute forward-looking statements andmay often, but
not always,be identified by the use ofsuch words such as
"expects","believes", "intends", "anticipates", "plans", "estimates",
"potential", "possible",or "probable" orstatements that certain actions,
events or results "may", "will", "should", or "could" be taken, occur or be
achieved.Additionally, initial production rates, average 30 day production
rates and improvements mentioned herein are not necessarily indicative of
future production rates or performance.Forward-looking statements are based
oncurrentbeliefs and expectationsand involve certain assumptions or
estimatesthat involvevarious risks and uncertainties thatcould cause actual
results to differ materially from those reflected in the statements. These
risks include, but are not limited to, those set forth in the Company's Annual
Report on Form 10-K for the fiscal year ended December 31, 2012 and other
filings submitted by the Company tothe U.S. Securities and Exchange
Commission ("SEC"),copies of which may be obtained from the SEC's website at
www.sec.govorthrough the Company's website
atwww.halconresources.com.Readers should not place undue reliance on any
such forward-looking statements, which are made only as of the date
hereof.The Companyhas no duty, and assumes no obligation, to update
forward-looking statementsas a result ofnew information, future events or
changes inthe Company's expectations.


HALCÓN RESOURCES CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except share and per share amounts)
                                                                
                                                                
                         Three Months Ended December Years Ended December 31,
                          31,
                         2012          2011          2012          2011
Operating revenues:                                              
Oil, natural gas and
natural gas liquids                                              
sales:
Oil                      $114,006    $20,818     $223,048    $82,968
Natural gas               5,775        2,421        12,458       10,673
Natural gas liquids       4,082        2,298        11,088       9,880
Total oil, natural gas
and natural gas liquids   123,863      25,537       246,594      103,521
sales
Other                     791          44           1,351        168
Total operating revenues  124,654      25,581       247,945      103,689
                                                                
Operating expenses:                                              
Production:                                                      
Lease operating           19,828       8,000        49,941       30,043
Workover and other        2,045        935          4,429        1,967
Taxes other than income   9,605        1,791        19,253       7,214
Restructuring             674          1,071        2,406        1,071
General and               45,022       7,639        111,349      20,609
administrative
Depletion, depreciation   55,623       6,109        90,284       22,986
and accretion
Total operating expenses  132,797      25,545       277,662      83,890
                                                                
Income (loss) from        (8,143)      36           (29,717)     19,799
operations
                                                                
Other income (expenses):                                         
Interest expense and      (8,973)      (3,561)      (31,223)     (17,879)
other
Net gain (loss) on        (5,277)      (13,156)     (6,126)      3,479
derivative contracts
Total other income        (14,250)     (16,717)     (37,349)     (14,400)
(expenses)
Income (loss) before      (22,393)     (16,681)     (67,066)     5,399
income taxes
Income tax benefit        14,352       4,477        13,181       (6,802)
(provision)
Net income (loss)         (8,041)      (12,204)     (53,885)     (1,403)
Non-cash preferred        --          --          (88,445)     --
dividend
Net income (loss)
available to common       $(8,041)    $(12,204)   $(142,330)  $(1,403)
stockholders
                                                                
Net income (loss) per                                            
share of common stock:
Basic                     $(0.04)     $(0.46)     $(0.91)     $(0.05)
Diluted                   $(0.04)     $(0.46)     $(0.91)     $(0.05)
                                                                
Weighted average common                                          
shares outstanding:
Basic                     228,075      26,270       156,494      26,258
Diluted                   228,075      26,270       156,494      26,258


HALCÓN RESOURCES CORPORATION
CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands, except share and per share amounts)
                                                                  
                                                      December 31,
                                                      2012         2011
Current assets:                                                    
Cash                                                   $2,506     $49
Accounts receivable                                    262,809     10,288
Receivables from derivative contracts                  7,428       1,850
Current portion of deferred income taxes               5,307       1,080
Inventory                                              3,116       4,310
Prepaids and other                                     6,691       2,729
Total current assets                                   287,857     20,306
Oil and natural gas properties (full cost method):                 
Evaluated                                              2,669,245   715,666
Unevaluated                                            2,326,598   --
Gross oil and natural gas properties                   4,995,843   715,666
Less - accumulated depletion                           (588,207)   (501,993)
Net oil and natural gas properties                     4,407,636   213,673
Other operating property and equipment:                            
Gas gathering and other operating assets               59,748      9,979
Less - accumulated depreciation                        (8,119)     (7,133)
Net other operating property and equipment             51,629      2,846
Other noncurrent assets:                                           
Goodwill                                              227,762     --
Receivables from derivative contracts                  371         2,050
Debt issuance costs, net of amortization               51,609      5,966
Deferred income taxes                                  --          21,355
Equity in oil and gas partnerships                     11,137      --
Funds in escrow                                        2,090       560
Other                                                  934         418
Total assets                                           $5,041,025 $267,174
Current liabilities:                                               
Accounts payable and accrued liabilities               $590,551   $25,061
Liabilities from derivative contracts                  10,429      1,855
Asset retirement obligations                           2,319       1,010
Promissory notes                                       74,669      --
Total current liabilities                              677,968     27,926
Long-term debt                                         2,034,498   202,000
Other noncurrent liabilities:                                      
Liabilities from derivative contracts                  2,461       2,855
Asset retirement obligations                           72,813      32,703
Deferred income taxes                                  160,055     --
Other                                                  10          10
Commitments and contingencies                                      
Mezzanine equity:                                                  
Preferred stock: 1,000,000 shares of $0.0001 par value
authorized; 10,880 and no shares issued and            695,238     --
outstanding as of December 31, 2012 and 2011,
respectively
Stockholders' equity:                                              
Common stock:336,666,666 and 33,333,333 shares of
$0.0001 par value authorized; 259,802,377 and
27,694,583 shares issued; 258,152,468 and 26,244,452   26          3
outstanding at December 31, 2012 and 2011,
respectively
Additional paid-in capital                             1,681,717   229,414
Treasury stock: 1,649,909 and 1,450,131 shares at      (9,298)     (7,159)
December 31, 2012 and 2011, respectively, at cost
Accumulated deficit                                    (274,463)   (220,578)
Total stockholders' equity                             1,397,982   1,680
Total liabilities and stockholders' equity             $5,041,025 $267,174


HALCÓN RESOURCES CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)
                                                                
                         Three Months Ended December Years Ended December 31,
                          31,
                         2012           2011         2012          2011
Cash flows from operating                                        
activities:
Net income (loss)         $(8,041)     $(12,204)  $(53,885)   $(1,403)
Adjustments to reconcile
net income (loss) to net                                         
cash provided by
operating activities:
Depletion, depreciation   55,623        6,109       90,284       22,986
and accretion
Deferred income tax       (14,090)      (4,580)     (13,060)     6,549
provision (benefit)
Share-based compensation  707           1,357       4,573        3,584
Unrealized loss (gain) on 8,530         13,437      11,727       (2,954)
derivative contracts
Amortization and
write-off of deferred     (35)          338         6,212        3,663
loan costs
Non-cash interest and     767           --          9,387        362
amortization of discount
Other expense (income)    (822)         245         (352)        223
Cash flow from operations
before changes in working 42,639        4,702       54,886       33,010
capital
Changes in working
capital, net of           61,967        1,320       63,288       (3,175)
acquisitions
Net cash provided by
(used in) operating       104,606       6,022       118,174      29,835
activities
                                                                
Cash flows from investing                                        
activities:
Oil and natural gas       (489,140)     (5,614)     (1,216,835)  (25,214)
capital expenditures
Acquisition of
GeoResources, Inc., net   --            --          (579,497)    --
of cash acquired
Acquisition of East Texas --            --          (296,139)    --
Assets
Acquisition of Williston  (756,056)     --          (756,056)    --
Basin Assets
Other operating property
and equipment capital     (20,512)      (169)       (38,752)     (672)
expenditures
Proceeds received from
sales of property and     10            (425)       564          48
equipment
Proceeds received from
sale of oil and gas       21,964        462         21,964       462
assets
Funds held in escrow      1,460         --          (1,529)      --
Net cash provided by
(used in) investing       (1,242,274)   (5,746)     (2,866,280)  (25,376)
activities
                                                                
Cash flows from financing                                        
activities:
Proceeds from borrowings  1,184,353     12,001      2,466,608    250,167
Repayments of borrowings  (327,000)     (10,399)    (655,000)    (245,621)
Debt issuance costs       (29,221)      (822)       (52,878)     (7,825)
Offering costs            (84)          (985)       (18,619)     (985)
Common stock repurchased  --            (66)        (2,139)      (183)
Preferred stock issued    --            --          311,556      --
Preferred beneficial      --            --          88,445       --
conversion feature
Common stock issued       294,000       --          569,000      --
Warrants issued           --            --          43,590       --
Net cash provided by
(used in) financing       1,122,048     (271)       2,750,563    (4,447)
activities
                                                                
Net increase (decrease)   (15,620)      5           2,457        12
in cash
                                                                
Cash at beginning of      18,126        44          49           37
period
Cash at end of period     $2,506       $49        $2,506      $49
                                                                
Supplemental cash flow                                           
information:
Cash paid for interest,
net of capitalized        $11,344      $23        $11,705     $554
interest
Cash paid for income      (3,842)       3,290       89           15,326
taxes
                                                                
Disclosure of non-cash
investing and financing                                          
activities:
Asset retirement          $7,898       $979       $8,587      $956
obligations
Preferred dividend        --           --         88,445       --
Payment-in-kind interest  --           (362)       14,669       --
Common stock issued for   --           --         321,416      --
GeoResources, Inc.
Common stock issued for   --           --         130,623      --
East Texas Assets
Common stock issued for   695,238       --         695,238      --
Williston Basin Assets
Current notes payable
issued for oil and        74,669        --         74,669       --
natural gas properties


HALCÓN RESOURCES CORPORATION
SELECTED OPERATING DATA
(Unaudited)
                                                             
                            Three Months Ended     Years Ended December 31,
                             December 31,
                            2012        2011       2012         2011
                                                             
Production volumes:                                           
Oil (MBbls)                  1,264       223        2,415        884
Natural gas (Mmcf)           1,914       677        4,554        2,662
Natural gas liquids (MBbls)  105         40         268          176
Total (MBoe)                 1,688       376        3,442        1,504
Average daily production     18,348      4,087      9,404        4,121
(Boe)
                                                             
Average prices:                                               
Oil (per Bbl)                $90.19    $93.35   $92.36     $93.86
Natural gas (per Mcf)        3.02       3.58      2.74        4.01
Natural gas liquids (per     38.88      57.45     41.37       56.14
Bbl)
Total per Boe                73.38      67.92     71.64       68.83
                                                             
Cash effect of derivative                                     
contracts:
Oil (per Bbl)                $1.66     $--      $0.89      $(2.02)
Natural gas (per Mcf)        0.44       0.51      0.82        0.94
Natural gas liquids (per     --         --        --          --
Bbl)
Total per Boe                1.74       0.91      1.70        0.49
                                                             
Average prices computed
after cash effect of                                          
settlement of derivative
contracts:
Oil (per Bbl)                $91.85    $93.35   $93.25     $91.84
Natural gas (per Mcf)        3.46       4.09      3.56        4.95
Natural gas liquids (per     38.88      57.45     41.37       56.14
Bbl)
Total per Boe                75.12      68.83     73.34       69.32
                                                             
Average cost per Boe:                                         
Production:                                                   
Lease operating^(1)          $11.75    $21.28   $14.36     $19.98
Workover and other           1.21       2.49      1.29        1.31
Taxes other than income      5.69       4.76      5.59        4.80
General and administrative,  14.47      16.71     15.81       11.32
as adjusted^(1)
Restructuring costs          0.40       2.85      0.70        0.71
Depletion                    32.03      14.55     25.05       13.55
                                                             
^(1) Represents lease operating and general and administrative costs per Boe,
adjusted for items noted in the reconciliation below:
                                                             
General and administrative:                                   
General and administrative,  $26.67    $20.32   $32.35     $13.70
as reported
Share-based compensation:                                     
Cash                        --         --        (0.11)      --
Non-cash                     (0.42)     (3.61)    (0.61)      (2.38)
Recapitalization and change                                   
in control:
Cash                        --         --        (3.10)      --
Non-cash                     --         --        (0.72)      --
Acquisition and merger                                        
transaction costs:
Cash                        (11.78)    --        (12.00)     --
General and administrative,  $14.47    $16.71   $15.81     $11.32
as adjusted
                                                             
Lease operating:                                              
Lease operating, as reported $11.75    $21.28   $14.51     $19.98
Recapitalization and change                                   
in control:
Cash                        --         --       (0.15)      --
Lease operating, as adjusted $11.75    $21.28   $14.36     $19.98
                                                             
Total operating costs, as    $45.32    $48.85   $53.74     $39.79
reported
Total adjusting items       (12.20)    (3.61)    (16.69)     (2.38)
Total operating costs, as    $33.12    $45.24   $37.05     $37.41
adjusted^(2)
                                                             
^(2) Represents lease operating, workover and other expense, taxes other than
income and general and administrative costs per Boe, adjusted for items noted
in reconciliation above.


HALCÓN RESOURCES CORPORATION
SELECTED ITEM REVIEW AND RECONCILIATION (Unaudited)
(In thousands, except per unit, per share and per mcfe amounts)
                                                              
                                                              
                           Three Months Ended      Years Ended December 31,
                            December 31,
                           2012        2011        2012          2011
                                                              
Unrealized loss (gain) on                                      
derivatives:^(1)
Crude oil                  $8,936    $14,265   $11,606     $(5,341)
Natural gas               146        (1,015)    2,117        72
Interest rate              --        (49)       (518)        506
Total mark-to-market        9,082      13,201     13,205       (4,763)
non-cash charge
Recapitalization            --        --        21,980       2,718
expenditures^(2)
Restructuring^(3)           674        --        2,406        --
Acquisition and merger
transaction costs and       19,882     --        41,294       --
other^(4)
Selected items, before
income taxes and preferred  29,638     13,201     78,885       (2,045)
dividend
Income tax effect of        (11,074)   (4,783)    (28,951)     751
selected items^(5)
Selected items, net of tax
and before preferred        18,564     8,418      49,934       (1,294)
dividend
Non-cash preferred          --        --        88,445       --
dividend^(6)
Selected items, net of tax  18,564     8,418      138,379      (1,294)
Net income (loss) available
to common stockholders, as  (8,041)    (12,204)   (142,330)    (1,403)
reported
Net income (loss) available
to common stockholders,     $10,523   $(3,786)  $(3,951)    $(2,697)
excluding selected items
                                                              
Basic net income (loss) per $(0.04)   $(0.46)   $(0.91)     $(0.05)
common share, as reported
Impact of selected items    0.08       0.32       0.88          (0.05)
Basic net income (loss) per
common share, excluding     $0.04     $(0.14)   $(0.03)     $(0.10)
selected items
                                                              
Diluted net income (loss)
per common share, as        $(0.04)   $(0.46)   $(0.91)     $(0.05)
reported
Impact of selected          0.06       0.32       0.88          (0.05)
items^(7)
Diluted net income (loss)
per common share, excluding $0.02     $(0.14)   $(0.03)     $(0.10)
selected items
                                                              
Cash flow from operations
before changes in working   $42,639   $4,702    $54,886     $33,010
capital
Cash components of selected 20,556     --        57,366       --
items
Income tax effect of        (7,690)    --        (21,052)     --
selected items^(5)
Cash flow from operations
before changes in working   $55,505   $4,702    $91,200     $33,010
capital, adjusted for
selected items
                                                              
Cash flow from operations
before changes in working   $0.13     $0.18     $0.23       $1.26
capital per diluted share,
adjusted for selected items
Impact of selected          0.04       --        0.15         --
items^(8)
Cash flow from operations
before changes in working   $0.17     $0.18     $0.38       $1.26
capital per diluted share,
adjusted for selected items
                                                              
^(1) Represents the non-cash unrealized loss (gain) associated with the
mark-to-market valuation of outstanding derivative contracts.
^(2) Represents costs related to the recapitalization, change in control and
credit facility refinancing.
^(3) Represents costs related to relocating key administrative functions to
corporate headquarters.
^(4) Represents costs primarily related to acquisitions of producing
properties and mergers.
^(5) Represents tax impact using an estimated tax rate of 36.7%
^(6) Represents amortization of the non-cash preferred dividend as a result of
the beneficial conversion feature of convertible preferred stock.
^(7) The impact of selected items for the three months ended December 31, 2012
was calculated based upon diluted shares of 334.8 million due to the net
income available to common stockholders, excluding selected items.
^(8) The impact of selected items for the three months and year ended December
31, 2012 was calculated based upon diluted shares of 334.8 million and 241.7
million, respectively, due to the net income available to common stockholders,
excluding selected items.

CONTACT: Scott M. Zuehlke
         VP, Investor Relations
         Halcon Resources
         (832) 538-0314

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