Tuesday, February 18, 2014

Haynesville Shale Production Analysis

With natural gas prices moving back into a range that some consider marginally economic for Haynesville drilling, it is worth a look at what has happened to that basin.  Both Louisiana and Texas publish production  data by county monthly.  Louisiana data is relatively complete after about 4 months, but Texas data tends to be revised upward due to late reporting for about a year, with most recent months being grossly incomplete.

With that knowledge, it is still meaningful to review incomplete production data, and the monthly production numbers included here are on an as-reported basis through Feb 15, 2014.  Important also to note that these are county/parish totals, which will include material amounts of legacy/non-haynesville production.

Rig activity has been flat to slightly upwards on both sides of the state line.  De Soto Parish, LA has historically represented about 50% of all Louisiana Haynesville production, and it still does.  It also hosted 13 of the 20 gas rigs that were targeting the LA Haynesville in Feb 2014.

Louisiana has always produced more Haynesville gas than Texas.  Panola County is the largest Haynesville producer on the TX side, and has been averaging about 15 gas rigs in recent months, per Baker Hughes.

Full County by County Analysis in PDF