I have talked to a few people in the oil & gas market and they feel that the Haynesville Shale has gone dry.

Is there anyone out there that can possibly shine some light on this.  I was hoping that things were going to start to pick up in the 2nd quarter 2013 but it doesn't look like it.

We have 4 business in the market and they are not running so good at negative cash flow and just wandering on when things might turn around.  Any info or insight would be helpful.

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Any time you drill a well it starts the process of going  dry. It is just like pouring water out of a jug at some point the water  is going to be gone. The boundary lines of the Haynesville have yet to be defined. Drilling in some areas has slowed   down and in others it has picked up, thats the nature of the biz. I think that uncertainty about which way the government may move on fracking has some on hold.

Thanks for the info and the insight.

You know if activity will continue in Panola and Shelby County?

I think that I would take the doom and gloom reports that you have heard with a grain of salt. Today it may be slow and it is for me at present. Slow downs generally happen in November and December, not in the Spring. I think it is due to a weak energy policy on the federal level and them putting the fracking issue on the back burner until after the presidental election. The election is over and we really don't know which way this issue will flop. Which ever way this thing goes will be purely political on the presidents part and have nothing to do with the good of the country. This is just my opinion and I think the mop will flop toward more drilling and fracking. Natural gas is the fuel of the future and anyone in power would be a fool to not recognize this. The USA may have more NG than anyone.

With Nat Gas prices below $5...it will continue to keep drilling down. There are a lot of guesses of when it will turn around. No one really knows. Good luck.

I feel that as well.  I was just talking to someone about the area going dry and it just kind of scare.  I haven't heard about that.  I have felt that the break even point of $3.00 - $3.5 is no longer and is more in the line of $5 to make drilling profitable.  Thanks for the info.


There will be some modest level of activity that will continue for the foreseeable future, but you won't see a lot of rigs return tot he area for the foreseeable future.  There may be an uptick of activity near San Augustine, related to James Lime, Austin Chalk, and other formations, 

We need a more general rebound in the economy (today's jobless report not withstanding), as well as more locations using gas and / or exports.  The south parts of Shelby County, and adjacent parts of San Augustine and Nacogodches counties still look really good, when gas prices get back up.  

dbob---don't believe there is any Austin Chalk in the San Augustine area

Yes, extreme south San Augustine, adubu. Brookeland field.

iit and associated stuff are heating up...

Please clarify by iit and associated stuff are heating up...

excuse my ignorance...just wanting to get a clear picture of what you are saying.

The Wilcox, Woodbine, Yegua, Georgetown, Glen Rose, Austin Chalk, and James Lime are all looking more and more active.  Part of the potentially productive area includes the area around and south of San Augustine.  

None of this will generate the kind of boom that the Haynesville did several years back, but should help sustain some of the business further south.  

I also respectfully disagree with cheapshot - Some level of drilling will continue in the Haynesville, If for no other reason than to keep production up, avoid more big right offs, Obviously, right now, some of the oil plays are more attractive, if you have the leasehold, but if drilling only occurred in the area with the highest ROR, it would be fairly limited.  

For companies which already have acquired a haynesville leasehold, and who find themselves in some of the better areas, drilling will continue.  Marginal areas (e.g. Teneha area) won't see activity.  

Even before the price drop, the Haynesville Shale was rapidly becoming uneconomic in geological circles. Too much was paid for leaseholds and costs to completion too high. And geologists were saying the gas wasn't there in like they thought.Now throw the price fall on top of all that, and bummer. Sure, they'll eventually drill it out and produce the play. But if any money was or is to be made in the Haynesville besides by royalty owners, it's in flips of large fractional working interests to some major players at exhorbitant prices.


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