Haynesville Shale: Nowhere Near Dead



Started March 28, 2017 at 09:19 am by @Keith Mauck in GoHaynesvilleShale

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Keith Mauck
03/28/17 09:19:23AM
@keith-mauck

Can the Haynesville maintain its comeback given that perhaps as much as 11-12 Bcf/d of new takeaway capacity could be coming to the mighty Marcellus region?

As an aging, dry, but nowhere near dead, natural gas titan in Northwest Louisiana and Eastern Texas, the Haynesville is our third largest shale play, now yielding around 6.3 Bcf/d and potentially holding nearly 500 trillion cubic feet of gas (here). With only a few oil-directed rigs, the Haynesville accounts for less than 1% of U.S. shale oil production, but 13% of shale gas production.

In recent years, the Haynesville was nudged out of the market a bit in favor of the lower cost supply in the Marcellus, Utica, and associated gas from oil production, the latter accounting for 20-25% of total U.S. gas output. But pipeline bottlenecks in the critical Northeast that keep prices lower and shut-in production are breathing new life into the Haynesville. Rig counts in the play are up 21 to 37 since mid-November, and "re-fracturing immediately increases gas rates 700% and sustains a 400% increase for three months in the Haynesville" (here).

The Haynesville has some advantages over other U.S. gas plays. Located near several major pipelines, there's no transportation bottleneck like there is in the Marcellus/Utica region. Public opinion wise, producers in both Texas and Louisiana have an underrated edge because oil/gas production is ingrained in the culture, as opposed to Ohio and Pennsylvania, where major development is relatively new.

Export hubs to Mexico and soon to be mushrooming LNG plants are all geographically close to the Haynesville. "These advantages keep differentials low, with combined gathering, processing and transport expected to amount to $0.37/Mcf in 2017" (here).

Screen Shot 20170328 at 9.10.58 AM.png

Read more:https://www.forbes.com/sites/judeclemente/2017/03/25/a-natural-gas-reemergence-in-the-haynesville-shale/#4e1f76ed230c

Elaine Callahan
03/28/17 09:33:09AM @elaine-callahan:

Good information.  Do you know of any companies wanting to purchase lease agreements in the Nacogdoches county area?


Skip Peel - Independent Landman
03/28/17 09:45:02AM @skip-peel-independent-landman:

elaine, I think your question is best asked in the Nacogdoches County Group.  When you post a discussion in a sub-group all those members get an email notice of the new discussion.  If Keith doesn't know the answer to your question, you are more likely to get a response in the Nacogdoches group than here on the main page.

http://shaleforum.com/shaleforum/group/518/nacogdoches-tx


Elaine Callahan
03/28/17 10:12:52AM @elaine-callahan:

Thanks for advice...will check Nac county


JeffNParis
03/30/17 10:42:48AM @jeffnparis:

Hey Skip ... Our first well was drilled in 2011. Is Chesapeake refracking and/or drilling more well on the same pad? Just wondering when ours might get a boost. Thanks for all you do for the community here. Jeff


JeffNParis
03/30/17 10:53:23AM @jeffnparis:

By the way Skip, we're in southern Caddo Parish.


Jay6
03/30/17 12:20:50PM @jay6:

Jeff if you are in Southern Caddo, you are still with CHK.

jay


Skip Peel - Independent Landman
03/30/17 10:55:44AM @skip-peel-independent-landman:

Jeff, you're welcome.  Keep in mind that Chesapeake has sold off one half or more of its leases in several sales over the last year or so.  Where they continue to operate they are focusing on long lateral wells with updated designs.  The company is running 4 rigs, currently 1 in Caddo and 3 in DeSoto.  The bulk of their new wells are two or three wells off the same pad drilling multiple sections/units.  Their newer wells that have been announced complete are a significant improvement.  I'm not aware of any re-frac operations by Chesapeake at this time.


JeffNParis
03/30/17 11:02:07AM @jeffnparis:

Thanks Skip. How would we know if our lease is still owned by Cheasapeake?


Skip Peel - Independent Landman
03/30/17 11:13:35AM @skip-peel-independent-landman:

All Chesapeake sales have been closed and the change of operator for wells processed by the state.  If you are still receiving royalty payments from Chesapeake then your mineral interest was not included in either of their sales.


JeffNParis
03/30/17 11:15:34AM @jeffnparis:

Thanks!


Michael Lowe
03/28/17 10:33:19AM @michael-lowe:
Hum maybe! Got a long way to go to even 80-100 rigs but MIGHT happen. MIGHT
Skip Peel - Independent Landman
03/30/17 12:16:20PM @skip-peel-independent-landman:

Michael, owing to the fact that well designs have changed, we are unlikely to see 80 Haynesville rigs ever again.  Now 40 rigs can drill the same linear feet of perforated lateral that took 80 rigs just a couple of years ago.  Forty rigs drilling Haynesville wells is a real possibility now if you count those in both states.  The rig count stands at 34 as of last Friday.


Carlton Byron Matlock2
03/29/17 05:56:52PM @carlton-byron-matlock2:

Would love to see a pickup in activity.  I own 180 acres in Shelby county and we have 100% mineral rights.  Need the checks to start pouring in.


Skip Peel - Independent Landman
03/29/17 06:02:38PM @skip-peel-independent-landman:

For questions on Shelby I suggest you seek advise from jffree1.  Julie is the site guru for that part of the play.


Keith Mauck
03/30/17 01:32:10PM @keith-mauck:

Here's a map @Jay6 wanted to post.

Screen Shot 20170330 at 1.31.17 PM.png


pdf
NewCompletions.pdf  •  321KB

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