A Haynesville Shale "leasing frenzy" in central Texas
A Haynesville Shale "leasing frenzy" in central Texas
Energy media is abuzz with word that Comstock Resources might be looking to sell their Northwest Louisiana Haynesville Shale properties which the company now refers to as their "Legacy" Haynesville.
One possible purchaser is said to be Citadel, the hedge fund that owns APEX Natural Gas. APEX has been aggressive in leasing urban Shreveport-Bossier mineral rights and purchasing existing Haynesville shale drilling units from other operators.
“Comstock has got good rock locations,” says Shreveport mineral consultant Skip Peel. “They’ve got plenty of undrilled well locations.”
According to reports, Comstock wants to sell their so-called “Legacy” Haynesville position to prioritize its Western Haynesville play in central Texas.
Peel says “prioritize” could be another word for “fund.” He said the Western Haynesville is a productive but expensive play.
“The reason it's expensive is because it's much deeper, it's hotter, it's over pressured, it's more expensive from a drilling and completing standpoint.”
According to TGS, a company that provides energy data and intelligence, permit depths range from 14,000 to 25,000 feet, with pressures as high as 17,000 psi, and bottom hole temperatures of 340 degrees in the Western Haynesville. TGS said those numbers require advanced and costly technologies to do the job and stay safe.
Comstock's 2nd quarter 2025 investor results report that their five Western Haynesville wells are seeing a production rate of roughly 50% higher than their Legacy Haynesville rate — 36 MMcf per day compared to 25 MMcF.
Peel says there is a leasing frenzy happening in the Western Haynesville and it includes locally known names like Aethon and Comstock. They are now being joined by Expand Energy and Matsui E&P USA.
Where is the Western Haynesville?
Operators began to lease up mineral rights in the area only recently, in 2020. The area is comprised of 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.
“Companies with a lot of know-how and a lot of money are all just piling into it,” said Peel.
Meanwhile, Peel is watching what might happen with the leases Comstock might sell locally.
“What happens is these private equity companies and maybe Citadel as a hedge fund, buy Haynesville assets and kind of invest in it, but don't fully develop it. They hold on to it for two or three years, and then they sell it to somebody else for a profit. And that's happened. This may be the fifth or sixth time in the 17 years that the Haynesville Shale has been going on, but it's still hot.”
Views: 836
Replies to This Discussion
-
Permalink Reply by Alan Herrington on -
Couple of quick points...
It remains to be seen if Comstock can make money in the Western Haynesville. Their wells to date have produced a massive cash flow deficit. My estimate is more than $300 million. They need sustained higher gas prices.
Not sure where TGS got a permitted TVD of 25,000 feet. The deepest reported TVD to date is 19,236 for the Comstock McCullough GLR C 3H in Robertson County.You can add Anderson and Houston Counties, and probably Cherokee to the counties in the Western Haynesville play. There is probably some double counting of acreage because of multiple leasing entities, but I've tracked about 78,000 acres in Anderson and another 41,000 in Houston. Expand has just filed a drilling permit request for a horizontal well in Houston County, and I picked up a rumor today of an upcoming test well in Anderson. More than 55,000 acres has been leased in Cherokee in a leasing project that has been going since February 2021. I believe Expand is the company behind that Cherokee County leasing.
Mitsui has completed drilling on three wells and two more are being drilled now. Two have surface locations in Leon, and three in Freestone, None of the wells have been frac'd yet. Mitsui has reported that 2025 is a test year for them in the new play, and that their intention is to ramp up activity in 2026, assuming they like the results of the early wells.
-
Permalink Reply by Skip Peel - Mineral Consultant on
-
Thanks for the detail and update on drilling, Alan. Yeah, I thought the TGS data seemed odd to me too. Do you have a target price for natural gas that would make the Western Haynesville profitable?
-
Permalink Reply by Alan Herrington on
-
Based on production through June 2025, Comstock's average gross price per MCF to date is only $2.40. An average of $4.25 would have been close to break-even cash flow.
-
Permalink Reply by Skip Peel - Mineral Consultant on
-
Is Jerry betting on LNG? Or data centers? $4.25 seems unlikely in the near term. Would private power agreements be the path to a profitable Western Haynesville?
-
Permalink Reply by Rock Man on
-
JJ definitely has a long-term big picture in mind for Comstock and gas market in general. Same as CHK / Expand and others.
One of JJ's unique efforts here is Comstock's apparent backing of Trinity Gas group that is has drilled or plans to drill close to a dozen gas injection wells in the Bethel Dome area of NW Anderson County.
Past Comstock presentations include maps showing gas pipeline from Western HV/Bossier trend heading to this this area (Bethel Dome) for injection.
Putting gas away for higher prices in the future. No idea how much storage capacity is available at Bethel.
-
Permalink Reply by Skip Peel - Mineral Consultant on
-
Never bet against Jerry.
-
Permalink Reply by Dave Coleman on
-
Like
-
Permalink Reply by Dave Coleman on
-
Alan can you tell me what sections Mitsui and Vanna is Drilling / Permitted in in Leon County or direct me where to find the information. We are 2 years into leases a few miles south of Oakwood and west of the cemetery. Hoping to see some activity in that area for information. Our leases are in Sections 742, 654, and 736. It has been in the family since 1936 and leased several times. Hoping this time if finally pays off beyond lease revenue.
Regards - Dave Coleman
-
Permalink Reply by Alan Herrington on
-
I'm out of town Dave. I'll get back to you in a day or so.
-
Permalink Reply by Dave Coleman on
-
Map answered my questions for now, Thanks. I really appreciate your input. I have the Leon County book of maps and enjoy chasing down what may be a nice payday some time. I am a 40 year drilling guy, who made it to the top of the ladder, all of it international, enjoying retirement at age 75.
Regards
Dave
-
Permalink Reply by Alan Herrington on
-
Vanna Production has done a deal with Expand. Assignment documents were filed in Anderson County Texas on Friday. The deal involves leases written by Vanna in Anderson, Freestone, Houston, and Leon Counties. It appears on first read that Vanna has retained a 15% working interest.
Here is a rough estimate of Expand's leased gross acreage in the Western Haynesville. There is some double counting of acreage where multiple entities leasing for Expand have leased the same tracts.
Anderson: 74,000 acresFreestone: 30,000
Houston: 43,000
Leon: 30,000
Total: 177,000 acres
-
Permalink Reply by Alan Herrington on
-
Here's a map showing the surveys in Anderson, Freestone, Houston, and Leon Counties in which Expand has leased acreage:
Support GoHaynesvilleShale.com
Top Content
Groups
-
WESTERN HAYNESVILLE
7 members
-
San Augustine, TX
386 members
-
Natchitoches Parish
402 members
-
Bienville Parish, LA
248 members
-
South Caddo Parish Group
441 members
-
DeSoto Parish
690 members
-
Sabine Parish, LA
455 members
-
SMACKOVER LITHIUM GROUP …
7 members
-
SMACKOVER LITHIUM GROUP …
6 members
-
Nacogdoches County
194 members
Blog Posts
Tuscaloosa Trend Sits On Top Of Poorest Neighbourhood For Decades - Yet No Royalties Ever Paid To The Community -- Why??
In researching the decades-old Tuscaloosa Trend and the immense wealth it has generated for many, I find it deeply troubling that this resource-rich formation runs directly beneath one of the poorest communities in North Baton Rouge—near…
ContinuePosted by Char on May 29, 2025 at 14:42 — 4 Comments
Not a member? Get our email.
© 2025 Created by Keith Mauck (Site Publisher).
Powered by
