The "Western Haynesville" is a quickly evolving play based on the deep Haynesville and Bossier geological formations. Comstock Resources was the early mover and Aethon has followed suit. Both companies have built large leasehold positions and drilled impressive wells. Other major unconventional O&G companies are joining them as the play area expands. Mitsui E&P USA has built a large position and Expand (Chesapeake) is heavily rumored to be leasing. There may be more major operators chasing this trend via the multiple brokerage firms that are active in the eastern expansion of the trend. The play area originally was comprised of Leon, Roberston and Freestone counties as the focus for early drilling. Leasing operations and "trend subsurface work" has seen the play expand to include Houston, Anderson, Cherokee and Nacogdoches counties. The eastward expansion to Nacogdoches County now almost connects the western trend to the original Haynesville Shale fairway. The prospective section in this trend ranges from 2000' to over 4000' thick, and the opportunity for multiple target intervals is highly probable based on some stacked lateral efforts by Comstock. The play is deep, hot and over pressured making it an expensive and challenging trend to drill, fracture stimulate and produce.
A company that has been part of the Haynesville Shale since 2017 is in the process of selling out to Japan-based Mitsubishi Corporation.
MC said subject to regulatory approval, they plan to purchase all the upstream and other assets and interests of Aethon Energy Management for $5.2 billion. The company is reportedly also taking on $2.33 billion of Aethon debt. Mitsubishi said the transaction “marks MC’s entry into the U.S. shale gas business across the value chain.”
Aethon has had a presence in northwest Louisiana.
“Aethon has probably done more refracking of old wells than any other major player in the Haynesville Shale,” said Shreveport mineral consultant Skip Peel.
“There’s also midstream assets, pipelines and treating facilities. Aethon has been trying to sell their Haynesville assets for at least four years, maybe five, and haven’t been successful up until now.”
Aethon’s holdings may have become more valuable to MC because of a couple of things, said Peel.
“The Japanese need a lot of LNG (liquified natural gas) and want to lock down supply for pricing reasons.” Mitsubishi is a key partner in the Cameron LNG plant on the Calcasieu ship channel.
Also, “The Louisiana Haynesville is getting old, it doesn’t have a long future. But the western Haynesville does, and the western Haynesville has become a priority for a lot of companies just in the last couple of years.”
The western Haynesville is located in the area around Freestone, Leon, Limestone and Robertson counties, which are to the south and east of Dallas. Hearne, which is north of Bryan and College Station, is the largest town in the region. Operators began to lease mineral rights in that region in 2020.
“Now that Mitsubishi, who has plenty of money to pursue the Western Haynesville, has that footprint, you can bet that they're going to start trying to lease more land and be competitive.”
He said Japanese companies such as TGNR (Tokyo Gas), Mitsui and now, Mitsubishi, were a bit late to the game, but are aggressive and have the financial ability to expand existing footprints.
“The western Haynesville is getting really competitive for leasing,” Peel said, “and when competition ramps up, that means good things for mineral owners.”
WESTERN HAYNESVILLE
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Description
The "Western Haynesville" is a quickly evolving play based on the deep Haynesville and Bossier geological formations. Comstock Resources was the early mover and Aethon has followed suit. Both companies have built large leasehold positions and drilled impressive wells. Other major unconventional O&G companies are joining them as the play area expands. Mitsui E&P USA has built a large position and Expand (Chesapeake) is heavily rumored to be leasing. There may be more major operators chasing this trend via the multiple brokerage firms that are active in the eastern expansion of the trend. The play area originally was comprised of Leon, Roberston and Freestone counties as the focus for early drilling. Leasing operations and "trend subsurface work" has seen the play expand to include Houston, Anderson, Cherokee and Nacogdoches counties. The eastward expansion to Nacogdoches County now almost connects the western trend to the original Haynesville Shale fairway. The prospective section in this trend ranges from 2000' to over 4000' thick, and the opportunity for multiple target intervals is highly probable based on some stacked lateral efforts by Comstock. The play is deep, hot and over pressured making it an expensive and challenging trend to drill, fracture stimulate and produce.
Aethon leaving Haynesville Shale, selling northwest Louisiana assets to Japanese company
by Skip Peel - Mineral Consultant
Jan 20
Aethon leaving Haynesville Shale, selling northwest Louisiana assets to Japanese company
https://www.shreveportbossieradvocate.com/business/mitsubishi-purch...
A company that has been part of the Haynesville Shale since 2017 is in the process of selling out to Japan-based Mitsubishi Corporation.
MC said subject to regulatory approval, they plan to purchase all the upstream and other assets and interests of Aethon Energy Management for $5.2 billion. The company is reportedly also taking on $2.33 billion of Aethon debt. Mitsubishi said the transaction “marks MC’s entry into the U.S. shale gas business across the value chain.”
Aethon has had a presence in northwest Louisiana.
“Aethon has probably done more refracking of old wells than any other major player in the Haynesville Shale,” said Shreveport mineral consultant Skip Peel.
“There’s also midstream assets, pipelines and treating facilities. Aethon has been trying to sell their Haynesville assets for at least four years, maybe five, and haven’t been successful up until now.”
Aethon’s holdings may have become more valuable to MC because of a couple of things, said Peel.
“The Japanese need a lot of LNG (liquified natural gas) and want to lock down supply for pricing reasons.” Mitsubishi is a key partner in the Cameron LNG plant on the Calcasieu ship channel.
Also, “The Louisiana Haynesville is getting old, it doesn’t have a long future. But the western Haynesville does, and the western Haynesville has become a priority for a lot of companies just in the last couple of years.”
The western Haynesville is located in the area around Freestone, Leon, Limestone and Robertson counties, which are to the south and east of Dallas. Hearne, which is north of Bryan and College Station, is the largest town in the region. Operators began to lease mineral rights in that region in 2020.
“Now that Mitsubishi, who has plenty of money to pursue the Western Haynesville, has that footprint, you can bet that they're going to start trying to lease more land and be competitive.”
He said Japanese companies such as TGNR (Tokyo Gas), Mitsui and now, Mitsubishi, were a bit late to the game, but are aggressive and have the financial ability to expand existing footprints.
“The western Haynesville is getting really competitive for leasing,” Peel said, “and when competition ramps up, that means good things for mineral owners.”