Haynesville Gas Minerals: A Ground War For Mineral Rights!
Haynesville Gas Minerals: Check Mate Strategies
From a Linkedin post. It echos a couple of articles I've seen lately but are pay walled so I didn't try to post them to the site. Anyone considering a sale of mineral rights should know this and read through my Seller Beware! discussion here on the Main Page. Always remember, the first offer is a low ball and never share with any buyer the amount of offers you have received or the companies that made those offers. Avoid collusion between mineral buyers.
In the heart of East Texas and Northwest Louisiana, a quiet revolution is unfolding beneath our feet, and it’s anything but subtle.
The Haynesville Shale, once a frontier of exploration, has now become a ground war for mineral rights. With LNG demand surging and natural gas prices climbing, the race is on to secure a shrinking inventory of mineral assets. But this isn’t just a land grab, it’s a high-stakes game of capital, creativity, and calculated risk... real life chess in action.
Here’s what’s driving the heat:
- Tight Supply, Tighter Competition – Most core acreage is locked down. Fewer willing sellers mean mineral owners are commanding premium deals or holding the cards entirely.
- LNG at the Helm – With Haynesville’s gas riding shotgun to Gulf Coast export terminals, proximity equals power. LNG demand is set to hit record highs in 2025-26, making this basin more strategic than ever.
- Consolidation Amplifies Tension – As giants merge and assets change hands (think Chesapeake Energy + Southwestern Energy, Chevron + TG Natural Resources LLC), the basin has become one of the most consolidated in North America. The result? Fewer operators. Higher stakes.
- Shifting Ground Strategies – With core acreage scarce, innovators are pushing into riskier flank zones, betting on tech, cost efficiencies, new completions designs and first-mover advantage.
This is no longer about who drills deeper, it’s about who thinks smarter, moves faster, and executes sharper.
The future of the Haynesville will be written by those who see opportunity in complexity and scarcity not as a constraint, but as a catalyst.
If you're investing, operating, or advising in the mineral space this is the moment to watch.
Views: 401
Replies to This Discussion
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Permalink Reply by Rick Jackson -
Thanks Great information!
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Permalink Reply by Skip Peel - Mineral Consultant
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You're welcome, Rick. Although I am seeing somewhat improved offers, I still occasionally see really ridiculous low ball ones hoping to find someone in financial difficulty or simply unaware of the value of their Haynesville minerals. Not all minerals are created equal and the fair market value varies by a number of factors.
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Permalink Reply by Rick Jackson
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I'm always getting offers, and I've some low and some what I thought were good offers, but not fair market value. I just always ask myself if I have a lease on well that's not producing why I'm getting so many offers?
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Permalink Reply by Skip Peel - Mineral Consultant
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All mineral companies prioritize an early return on investment. Some may have some level of inside information considering how interconnected the O&G and mineral business is but I think most look at the data available in the public record. If they see an application for alternate unit wells, they send letters and make phone calls. When they see one or more permits to drill, they do the same. When a permit gets a rig, more of the same. If they can manage it, mineral companies want to get in on the first production of new wells.
All mineral owners of record should get a notice letter for that first step in the process. No notice is required nor sent for the next two.
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Permalink Reply by Eric Polansky
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"Speaking of Sorts" I know it's been a few years. has anyone heard what's going on with old Grenadier Lease out in bossier/ Arizona Road in Claiborne? Any info is helpful as it has been way over 3 years since 2016..
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Permalink Reply by Skip Peel - Mineral Consultant
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Eric, the website has a Claiborne Group but it has been years since there was any activity. I lasted posted about Grenadier in 2019. I'll post a link to the group page below in case you would like to ask your question there. The members who might answer your question likely would not see it in these main page discussions.
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Permalink Reply by Eric Polansky
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Thank you again, skip.. that's probably the last time we have corresponded
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Permalink Reply by Quattro
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I know it is an impossible question with infinite variables but I’ll ask it anyway. What is fair value right now? What type offers are people seeing?
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Permalink Reply by Skip Peel - Mineral Consultant
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There is no "overall" fair market value. The specifics of each mineral interest define fair market value. First, you can basically divide the Haynesville Fairway into the portion with only economic Haynesville Shale (the northern half) and the portion that has both economic Haynesville and Bossier. Then you have to look at existing wells and how much room there is for future wells. The northern half if where the play began before moving south and is much more heavily developed. Then it becomes a question of timing for new wells. If there are no existing field orders, there is no reason for buyers to pay a premium. There is still value but it will be discounted based on the number of undrilled well slots and the currently monthly production. All the units are Held By Production (HBP) to some extent. There is always the question of the take away capacity in the particular field. Is there room in the pipeline system for more production? I could go on but we would be getting into the weeds. Suffice it to say there is no such thing as fair market value without relying on the specifics of a particular section.
Having said that, the value overall is increasing except where sections/drilling units have been full developed and there is no room for more wells.
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Recently had very aggressive purchase offer. Section with some older wells. Was trying to use SONRIS to see if anything is out there new, but don’t see it.
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Permalink Reply by Skip Peel - Mineral Consultant
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If there is no new permit to drill listed for your section/unit, look at the most recent monthly production volume reported. When unit production is less than 1000 mcf a month, new wells are probably on the drilling schedule even if there is no new application for a permit to drill.
Refer back to the last notice letter you received for alternate unit wells. Often a Field Order for alternate wells may be for more wells than have been drilled. If an operator already has an approved Field Order in hand with undrilled lateral slots, they can simply get a permit to drill and you would never know it unless you are looking on SONRIS periodically. There is no notice required and the well slot was already approved.
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