Natural Gas Shale In The Haynesville Ripe For Dealmaking

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About 10 years ago, the Haynesville Shale in East Texas and northwest Louisiana was hopping with operators looking to plumb for natural gas. But when natural gas prices sank to new lows about five years ago, companies began shunning it for more promising gas prospects in the Marcellus and Utica Shales in Appalachia – and to pursue oil riches in West Texas’ and New Mexico’s Permian Basin.

Now the Haynesville is back with rig counts trebling and production hitting four-year highs, thanks to rising natural gas prices and new petrochemical, fertilizer and export facilities popping up along the Gulf Coast. And that leads some observers to think the region could be ripe for some dealmaking.

David Beard, a senior analyst for exploration and production at research and trading firm Coker Palmer Institutional, said newfracking techniques have driven some impressive well results in the basin, which has the pipeline capacity to get supplies to the petrochemical demand centers along the Gulf Coast…

 

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