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What is this all about? Just what IS the Haynesville Shale?

The Haynesville Shale is a geological formation found at approximately 13,000 to 14,000 feet subsurface in a broad area of Northwest Louisiana and near East Texas. It is essentially a very large underground shale deposit that contains an abundance of natural gas. Discovery wells drilled in recent months have started defining the limits of the area to South Webster, Western and Southern Bienville, Mid to South Bossier, South and West Caddo. Eastern Red River, all of DeSoto, Northern Natchitoches and Sabine Parishes. As more wells are drilled, this area will be more clearly defined and “sweet spots” will be located and drilled extensively. The Haynesville Shale is believed by industry experts to be the largest find of its kind in the Continental United States.

Shale ‘formations’...shale ‘deposits’....shale ‘plays’ - what does it all mean, really?

Using oil and gas language, a ‘formation’ is simply a term used to describe a big underground pocket of oil, natural gas or other commercially produced minerals that we use for energy. Large exploration companies like Chesapeake Energy or PetroHawk hunt extensively for these pockets or formations of gas, and it just so happens that Northwest Louisiana is sitting on top of one of the largest natural gas formations in the continental US.

Suffice it to say, this is exciting news for landowners in Louisiana.

Shale formations are very “tight” formations, that is, they are not porous and therefore, hydrocarbons, such as natural gas that is found in the shale cannot flow easily to the wellbore. The Haynesville Shale is a typical shale formation. However, with modern methods of fracturing (a “frac”) the subsurface structure, this tight formation has met its match. After fracturing, the shale gives up its precious commodity (natural gas) in a commercially productive manner. In addition, modern drilling methods allowing horizontal drilling through the shale formation make it possible to provide much more exposure of the shale to the wellbore.

Shale plays have become much more desirable to produce by large companies due to relatively higher natural gas prices in the last few years. Natural gas as a fuel source is a clean burning fuel now much in demand to meet the needs of American industries and residential energy markets. Products manufactured with this American commodity will be more competitive in the world market. The future is bright and hopeful for both city and country residents in Louisiana and Texas as the Haynesville Shale play continues to be discovered, explored and marketed.

So…what does this mean to you - the landowner?

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We realize that it certainly can be daunting to become an Oil and Gas minerals expert overnight, especially if you have already been contacted by a landman or a representative of an exploration company. To help other landowners just like you who are looking for answers about leasing, land and mineral rights, the Haynesville Shale Landowners organization was formed to protect landowners as well as get the best possible price when a lease is negotiated. We draw on over 100 years of combined legal, financial and geological expertise to ensure that your land is handled properly and professionally, especially when oil and gas specific issues are involved. "Staying in the herd" offers you the best protection and leverage you can afford.

The Haynesville Shale Landowners Association (HSLA) then is an ongoing group effort that gives greater bargaining power and divides the cost of having effective representation over more properties than just one-at-a-time. In addition, the group provides more and better information than you could find and digest on your own. The group was formed by several citizens who wished to share an attorney for negotiations. The effort paid off by recruiting a Lawyer, a Geologist, a Financial Planner and a CPA. Thus several areas of interest for the Landowner are covered by one cooperative group effort. HSLA Members can take advantage of oil and gas specific legal expertise that works to negotiate the best lease package possible for Member acreage. Additionally, Members have access to current oil and gas industry tax tips, geological updates in the Haynesville Shale coverage area as well as Financial planning tips on how to secure and contribute for retirement.

Individuals choosing to join the group will be entitled to current information updates and joint leasing of their property as blocks of sufficient size are amassed to provoke competitive prices from the Oil and Gas Companies. A small membership fee is paid at joining ($50). This fee defrays the costs of establishing the Web based database and information dissemination system. Annual renewals are $25 each.