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Permalink Reply by Jesse Joyner on August 31, 2014 at 3:53

Informative post, Henry.  Of course, with such journalism (and with certain stuck-behind-their-desks data-mining wonks who only know what streams into their computers via other sources)  -- the truth of the source material might be coming a bit late to the game.  For those who are truly in the know, the drilling has already picked up in desirable locations in the HA.  So by this time next year, the statistics might be catching up to the boots-on-the-ground facts.  The Haynesville is anything but dead. It's alive and kicking.

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Permalink Reply by Michael Lowe on September 2, 2014 at 5:44

Someone will supply gas to the LPG ships---maybe Haynesville Shale?

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Permalink Reply by Timber Gal on September 2, 2014 at 14:43

Any ideas why Seeking Alpha made no mention of Anadarko's recent explorations in Caddo/Bossier?  Could it be because it's not in a 'sweet spot'?

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Permalink Reply by Skip Peel - Mineral Consultant on September 2, 2014 at 14:53

Anadarko doesn't have anything positive to announce regarding their N Caddo/Bossier Haynesville liquids wells.  The wells completed and announced to date are not economic.  They don't have a rig drilling in that play presently.  You can find discussions containing the well results in the North Caddo Group.

http://www.gohaynesvilleshale.com/group/NorthCaddo/forum/topics/ana...

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Permalink Reply by MKM on September 3, 2014 at 4:56

Skip - this article seems to indicate that any future drilling will not happen in areas outside of the "sweet spot". Does that mean that other parishes, like Natchitoches (where our previously leased acreage is located) are done?

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Permalink Reply by Skip Peel - Mineral Consultant on September 3, 2014 at 5:16

The term, sweet spot(s), is far too vague for the purposes of describing what areas will or won't be developed and when.  Haynesville Shale wells are often broken down into categories by  Estimated Ultimate Recoverable (EUR) expressed as Billion Cubic Feet (Bcf) per well.  The categories are generally defined as - Core: >8 Bcf, Tier 1: 6 to 8 Bcf, Tier 2: 4 to 6 Bcf and Tier 3: <4 Bcf.  At current NG prices the bulk of what is being drilled is Core and Tier 1 areas.  Interest in drilling Tier 2 and especially Tier 3 should eventually materialize at higher future natural gas prices.

The areas of Natchitoches Parish that have been drilled for the Haynesville Shale are generally sub-economic.  The Haynesville Shale pinches out against Natchitoches Island and the limited amount that does exist prior to pinch out is deep, hot and heavily faulted. 

The Anadarko wells in North Caddo are different.  Although they are Haynesville Shale wells, they are not "dry gas".  Anadarko's interest was in making commercial "wet gas" wells.  Unfortunately they have been unsuccessful to date.

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Permalink Reply by Highwayman on September 24, 2014 at 0:50

What about the three or so Haynesville Shale wells around Ashland in Natchitoches Parish?  Are they sub-economic like the rest of the parish?

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Permalink Reply by Skip Peel - Mineral Consultant on September 24, 2014 at 4:36

The Guin well is a Tier 2 HA well (4-6 Bcf) and would have been marginally profitable even at the depressed price of NG if it hadn't experienced so many mechanical problems and cost so much - $23,173,166.48.  The Hood and the PH (CV) are poor wells.  In the future the Guin well may be reason for some company to explore further in the Ashland Field when the NG glut recedes.

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Permalink Reply by phoenix on September 12, 2014 at 8:40

Skip,

Any news on Sabine Parish.  Haynesville appears to be productive there but no activity in a long time for Haynesville or any other pay zones.  I am surprised no one has pursued any Annona chalk or Saratoga shallow oil production.

Thanks

Phoenix

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Permalink Reply by Skip Peel - Mineral Consultant on September 12, 2014 at 8:53

Yes, the Haynesville Shale is productive in Sabine Parish.  Bossier has 1 rig running, Caddo 7, DeSoto 9 and Red River 1. . With the exception of one Anadarko rig, those are EXCO, Chesapeake and BHP wells.  What companies own the majority of Haynesville Shale rights in Sabine?  Encana and SWEPI (Shell). Sabine has no rig running largely because Encana and SWEPI are spending their operating dollars elsewhere.  They have experienced difficulties from expending a lot of capital and getting a poor return on dry gas in general.  Especially in the Haynesville Play.  Of the companies besides those two that have Sabine rights, their better rock is in other parishes. 

I'm curious why you are surprised at the lack of Annona and Saratoge production?

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Permalink Reply by James D on September 4, 2014 at 8:28

KinderMorgan (old TGT) pipelines from SE Texas that go to Pennsylvania/New York will reverse one of their lines to bring gas from Pennsylvania/Virginia down to SE Texas. 

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Permalink Reply by Skip Peel - Mineral Consultant on September 4, 2014 at 8:35

They're not the only ones.  There are other pipeline projects in the works to bring Marcellus Shale gas to the Gulf Coast.

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