Now that the celebrated Barnett Shale is becoming exhaustively leased and drilled, operators are looking a bit further to the east. East Texas and North Louisiana share the next hot play known as the Haynesville Shale. This high pressure reservoir may “out produce” the Barnett.
The flow rates of these early Haynesville gas wells are promising at current prices, but it is also important to know that completion costs are significantly higher than Barnett wells. At depths of around 14,000 feet, fracs require ceramic proppant that withstands greater pressure. Working interest owners only familiar with Barnett and Fayetteville AFEï¿½s may be surprised.
There is also the possibility of multi-zone recovery in the overlaying James Limestone and Cotton Valley sands. Thus, the leasing proposition may be a bit more complicated. Nevertheless, if youï¿½re an operator or interest owner, the Haynesville may prove irresistible and, if leased, drilled and developed smartly, quite profitable.
Licensed in Texas and Louisiana, Evan Fogelmanï¿½s practice is focused on Oil and Gas transactions. Please call him at (972) 661-5114 or e-mail email@example.com to schedule a consultation.