The Haynesville shale is a formation of the Upper Jurassic age that is located between the Smackover Formation and the Cotton Valley Group. The Haynesville Shale formation rock is both the source rock (rich in organic content) and the reservoir rock, (having great porosity and permeability to store and transfer hydrocarbons).
The formation is a thick, black, organic-rich shale that is split into upper and lower members with the lower members being the primary interest to the oil and gas industry. The lower is 300-350 feet thick in the most prospective East Texas areas and is estimated to be around 200-250 feet thick in Northern Louisiana. The Haynesville shale produces from a depth of 10,000 feet with impressive results.
What Area does the Haynesville Shale Cover?
The Haynesville shale was discovered in the 1990’s, but only with new drilling technology advances like fracking and directional drilling has the area been economically viable (since around 2008). The oil and gas industry quickly applied what had been previously learned from the Barnett Shale of Texas, thereby producing impressive results very quickly.
The Haynesville shale is expansive, with an area of approximately 3 million acres of Southern Arkansas, East Texas, and Louisiana, located primarily in the following counties: Gregg County, Harrison County, Marion County, Panola County, Shelby County, Rusk County, and Upshur County.
Who’s Drilling in the Haynesville Shale?
Chesapeake Energy is the largest company with lease rights in the Haynesville Shale of more than 500,000 net acres. EnCana, Petrohawk, and Shell have approximately 300,000 net acres each. As of 2010, the Haynesville shale has more rigs drilling for gas in the formation than any other shale formation in the US.
What Types of Drilling are being used?
The formation was known to contain large quantities of natural gas prior to 2008. However, it was not economically feasible to extract. Recently, though, due to rising gas prices and improved hydraulic fracturing and directional drilling technology, it has became possible and economical to drill for gas in the Haynesville Shale. These new technologies have all but eliminated vertical drilling in many locations, and are the only options in others, such as the Haynesville Formation
Investing in the Haynesville Shale
The Haynesville shale has produced very impressive results since 2008. With new technologies being introduced to the oil and gas industry on an almost monthly basis, along with the U.S moving to become energy independent by 2030, the U.S shale boom appears to be here to stay with great investment opportunities.
Invest, but invest wisely. Make sure to read through our oil investment insider’s guide and go through the legit meter process with any opportunities you consider.