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  • Unconventional Oil & Gas

    Shale plays first come to mind when one considers unconventional resources. These unconventional resource plays may yield natural gas, gas condensates, and crude oil. Some of the more noteworthy shale plays in North America include the Bakken, Eagle Ford, Marcellus, Fayetteville, Woodford, Niobrara, Haynesville, Horn River, and Utica formations. Tight gas, coalbed methane, oil sands, and heavy oil are non-shale unconventional resources.

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    Eagle Ford | Marcellus | Cline | Permian | Utica | Bakken | Woodbine & Eaglebine

    Haynesville

    Haynesville Shale ImageThe Haynesville shale play runs through northwestern Louisiana, northeastern Texas, and the southwestern tip of Arkansas. Some industry experts believe the Haynesville shale could ultimately produce as much as 30 to 40 trillion cubic feet of natural gas and will outproduce the Barnett shale in less than five years. The reason is the formation is very deep and very thick. The depth and high pressures make drilling expensive, but the payout is believed to be worth the cost.

    Chesapeake Energy is the major leaseholder and producer in the Haynesville, but several smaller operators, including Houston-based Petrohawk Energy, have acquired significant positions and are increasing production quickly. The Cotton Valley tight gas formation is located just above the Haynesville shale and is also a major target for companies operating in this area.

    Haynesville

    Haynesville Shale News

    Shale gas production economics spreadsheet model and inputs

    Sep 20, 2013

    With natural gas prices for CME NYMEX Henry Hub futures averaging $3.69/MMBtu so far this year, you might think that the internal rate of return for dry natural gas wells in the Haynesville would be under water. But in fact, wells are still being drilled with IRRs in the low teens.  Granted these wells don’t look nearly as good as liquids plays in other shale basins, but the wells are profitable. How could this be?

    Shale production economics – Estimating well production

    Sep 9, 2013

    Shale has transformed the economics of oil and gas production in the US and is creating an era of lower cost energy. Attractive rates of return are bringing producers to profitable shale plays like bees to a honey pot. Among the keys to those attractive rates of return are high initial production and high cumulative production rates in the early years of typical shale wells. Today we continue our rundown of shale production financial return calculations with a review of well production estimation techniques.

    Chesapeake sells Eagle Ford and Haynesville assets to EXCO for $1B

    Jul 3, 2013

    Chesapeake Energy Corp. (NYSE:CHK) announced the execution of agreements to sell assets in the northern Eagle Ford Shale and Haynesville Shale to Dallas-based EXCO Operating Company LP, a subsidiary of EXCO Resources Inc. (NYSE:XCO), for aggregate proceeds of about $1 billion, of which approximately 90% will be received upon closing.

    Marcellus surpasses Haynesville as largest US natural gas producing play, says IHS

    Mar 18, 2013

    Recent pipeline expansions have helped the Marcellus shale play reach a production rate above 7 billion cubic feet (BCF)/day; surpassing the Haynesville shale to become the largest gas producing play in the US, according to a new IHS (NYSE: IHS) report.

    Investor group to gain shale play acreage with Samson acquisition

    Nov 23, 2011

    An investor group consisting of KKR, NGP, Crestview Partners and Itochu Corp., has signed a definitive agreement to acquire Samson Investment Co., one of the largest private exploration and production companies in the US, for $7.2 billion.

    EXCO sets 2012 budget, reduces Haynesville activity

    Nov 18, 2011

    Dallas-based EXCO Resources Inc. has estimated its 2012 capital budget around $710 million, including $585 million for development and completion activities.

    Pivotal LNG to provide LNG to Encana in Haynesville Shale

    Aug 22, 2011

    Pivotal LNG, a subsidiary of Atlanta-based AGL Resources Inc., has signed an agreement with Encana Natural Gas Inc., a subsidiary of Encana Corporation, to supply liquefied natural gas that Encana plans to offer to service providers operating fleet trucks in the Haynesville Shale area of Louisiana.

    Enbridge to invest $175M to expand Haynesville Shale infrastructure

    Apr 29, 2011

    Enbridge Energy Partners LP plans to invest an additional $175 million to expand its East Texas system serving Haynesville Shale producers.

    Encana to provide mobile LNG refueling stations for trucks serving Haynesville Shale

    Apr 5, 2011

    Sun River Energy completes Haynesville Shale well in Carthage Field

    Apr 5, 2011

    Dallas-based Sun River Energy Inc., a development stage upstream oil and gas company, has completed the Neal Heirs # 1 well in the Haynesville Shale formation in East Texas and turned it to production on March 31.

    Barnett takes a backseat to Haynesville as nation's leading shale play

    Mar 22, 2011

    Louisiana’s Haynesville Shale is now the nation’s highest-producing shale gas play, surpassing the Barnett Shale in Texas, said the US Energy Information Administration (EIA) March 18, citing reported pipeline flows.

    Cubic Energy releases flow rates of three Haynesville wells

    Jan 25, 2011

    Dallas-based oil and gas company Cubic Energy has announced results of three horizontal Haynesville Shale wells in Northwest Louisiana.

    Haynesville drilling drives up Comstock Resources' reserves 45%

    Jan 24, 2011

    Comstock Resources Inc. said Jan. 24 that its proved oil and natural gas reserves as of Dec. 31, 2010 were estimated at 1,026 bcf of natural gas and 4.2 million barrels of crude oil or 1,051 bcfe, an increase of 45% as compared to total proved reserves as of Dec. 31, 2009 of 726 bcfe.

    Mainland Resources looks for commercial Haynesville in Mississippi

    Jan 4, 2011

    Mainland Resources has reached total depth of 22,000 feet with its Burkley-Phillips well, drilled to test the Haynesville in Jefferson County, Mississippi on the border with Louisiana. The company is now determining its path to completion.

    Comstock delayed in completing Haynesville and Bossier shale wells

    Oct 19, 2010

    ConocoPhillips CEO on shale boom: We've only scratched the surface

    Technology innovation has expanded the world’s energy resource base and the oil and gas industry will continue to working to supply that growth, said ConocoPhillips (NYSE:COP) chairman and CEO Ryan Lance.

    ©2014 Michael Stravato. Provided courtesy of the James A. Baker III Institute for Public Policy, Rice University.

    Read the full article here. 


    US tight oil production averaged 3.22 day MMbbl/d in 4Q13, according to US EIA estimates. This level was enough to push overall crude oil production in the US to an average of 7.84 MMbbl/d, more than 10% of total world production, up from 9% in the fourth quarter of 2012. Read more here

    Can the shale gas rBart Willigers, Palantir Solutions Ltd. evolution currently taking place in the US be repeated elsewhere? Although significant volumes of unconventional gas deposits are present in Poland, France, Germany, Hungary, Sweden, Turkey, and the UK, shale gas developments are running many years behind their counterparts in the US. Skeptics have pointed out that differences in geology, taxes, public acceptance, environmental regulations and other factors in Europe vs. the US make for a tougher environment in which to develop unconventional resources. 

    Read the article by Bart J. A. Willigers of Palantir Solutions Ltd. here

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