ETX/NLA Basin Dynamics (USGS)
The Haynesville remains a very enticing shale gas play. It is one of the most explored of the shale plays, has ample pipeline capacity, and is very near the large growing LNG export market. The existing infrastructure provides producers 17 major pipelines to serve the Haynesville, including eight intrastate pipelines and the following 11 interstate transmission lines:
Enable Gas Transmission
Enable Mississippi River Gas Transmission
ETC Tiger Pipeline
Southern Natural Gas
Tennessee Gas Pipeline
Texas Eastern (TETCO)
Texas Gas Transmission
Gulf South Pipeline
Gulf States Transmission
The Haynesville Shale is a proven natural gas resource play experiencing a renaissance due to longer laterals and improvements in completion design with consistent well results when utilizing similar completion recipes. These new techniques are allowing rates of return ranging from
These enticing returns coupled with existing facilities and infrastructure provide for pad- drilled wells with low incremental costs and rapid “spud-to-sales” cycle times. This attractive combination has incentivized several companies to bet big on the Haynesville basin, including Chesapeake, Covey Park, EXCO, Range Resources and Comstock.
In addition, deal activity in the Haynesville totaled nearly $3.0 billion in 2016, more than doubling from $900 million of transacted deals in 2015. The 2016 list of large Haynesville buyers include Covey Park (2 deals, $885 million), Indigo (2 deals, $825 million) and Castleton Commodities ($1.0 billion).
The Haynesville is one of today’s premier U.S. gas plays. Chesapeake remains the top operator and using Gen 4 completions (10,000’ laterals, high proppant loads) is reporting some IP30’s reaching over 30 and 40 MMcf/d.
The new completion methodology is transformational for the play and is causing new attention and increased activity in the Haynesville. Recent wells drilled by offset operators utilizing a predominantly slick water design and up to 5,000 lbs of proppant per foot (an increased proppant concentration of close to 400%) projects to yield more than 2.5 Bcf per 1,000 feet of lateral (a 100+% improvement in EUR per foot versus short lateral/low proppant wells).
Lastly, recent long lateral wells have produced 3-4 Bcf in 120 days and expect to produce over 9 Bcf in 1 year.