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The Haynesville Shale Guide for Owners
                                               The Haynesville Shale is a natural gas field located
                                               primarily in Northern Louisiana and East Texas. At one
                                               period, experts estimated that the Haynesville held up to
                                               35 tcf (trillion cubic feet) of natural gas, making it one of
                                               the most promising natural gas fields in the United States.

                                               Haynesville Shale History

                                               The Haynesville Shale formation is not new to geologists.
                                               While oil and gas companies have known of the
                                               Haynesville Shale and it’s properties as a natural gas field,
                                               it was not an economical option until recent
                                               advancements in hydrologic fracturing (known as
                                               “fracking”) and other horizontal drilling techniques.

Current Haynesville Activity

Unfortunately for Haynesville Shale Landowners, low gas prices
and fresher and more economically viable shale plays have caused
activity in the Haynesville to go stale. While rig counts climbed to
the low 180s in early 2011, the past few months, and leading to
June 3rd, 2011 have shown a declining trend. As of June 3, 2011
the Haynesville only had 129 rigs total (97 in Louisiana – 32 in
Texas).

Landowner’s Options

With declining activity in the Haynesville, Landowners are faced
with some tough decisions. It is likely that many of the oil and gas
companies will position themselves to hold their leases by
production, which means only 1 well per 640 acres, and a slight
chance at new drilling in the near future. Landowners will continue to see their monthly check amounts
decline. Landowners have two real options on how to act on their mineral or royalty ownership. Either
they can hold their minerals and hope for brighter days and higher gas prices in the next few years, or
their can sell the mineral rights or royalty interest now while there is still reasonable cash flow and
interest in their property.

How to Decide – Sell my minerals or not?

The age old question of any seasoned mineral owner is “should I ever sell my mineral rights”. If you’re a
well-diversified landowner with cash in the bank, very little (if any) debt and no immediate needs, then
you should almost always hold on to your mineral ownership or royalty interest. If, however, you need
some extra cash to pay off high interest credit cards, take a vacation or even send your kids to college,
then selling all or part of your mineral rights in the Haynesville Shale might be the right thing for you.

Selling mineral rights or royalty interest is a lot easier than you might think. You don’t have to sell your
home or farm with your mineral rights (yes, they can be separated), and you don’t have to sell all your
mineral rights. In fact, you can sell any percentage you like! And if you don’t think selling your mineral
rights fits, you can always consider simply selling the royalty interest from a producing well on your
property (if you’re lucky enough to have one).

If you want to learn more about selling your mineral rights in the Haynesville Shale, or if you’re just
interested in what is going on in the Haynesville, give the guys at Caddo Minerals (caddominerals.com) a
call. They will answer all your questions, and give you an idea of the value in your minerals all at no
charge!

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http://www.caddominerals.com is the place to learn about the Haynesville Shale and how to take control of your Haynesville Shale mineral rights, royalties and working interests.

  • 1. The Haynesville Shale Guide for Owners The Haynesville Shale is a natural gas field located primarily in Northern Louisiana and East Texas. At one period, experts estimated that the Haynesville held up to 35 tcf (trillion cubic feet) of natural gas, making it one of the most promising natural gas fields in the United States. Haynesville Shale History The Haynesville Shale formation is not new to geologists. While oil and gas companies have known of the Haynesville Shale and it’s properties as a natural gas field, it was not an economical option until recent advancements in hydrologic fracturing (known as “fracking”) and other horizontal drilling techniques. Current Haynesville Activity Unfortunately for Haynesville Shale Landowners, low gas prices and fresher and more economically viable shale plays have caused activity in the Haynesville to go stale. While rig counts climbed to the low 180s in early 2011, the past few months, and leading to June 3rd, 2011 have shown a declining trend. As of June 3, 2011 the Haynesville only had 129 rigs total (97 in Louisiana – 32 in Texas). Landowner’s Options With declining activity in the Haynesville, Landowners are faced with some tough decisions. It is likely that many of the oil and gas companies will position themselves to hold their leases by production, which means only 1 well per 640 acres, and a slight chance at new drilling in the near future. Landowners will continue to see their monthly check amounts decline. Landowners have two real options on how to act on their mineral or royalty ownership. Either they can hold their minerals and hope for brighter days and higher gas prices in the next few years, or their can sell the mineral rights or royalty interest now while there is still reasonable cash flow and interest in their property. How to Decide – Sell my minerals or not? The age old question of any seasoned mineral owner is “should I ever sell my mineral rights”. If you’re a well-diversified landowner with cash in the bank, very little (if any) debt and no immediate needs, then you should almost always hold on to your mineral ownership or royalty interest. If, however, you need
  • 2. some extra cash to pay off high interest credit cards, take a vacation or even send your kids to college, then selling all or part of your mineral rights in the Haynesville Shale might be the right thing for you. Selling mineral rights or royalty interest is a lot easier than you might think. You don’t have to sell your home or farm with your mineral rights (yes, they can be separated), and you don’t have to sell all your mineral rights. In fact, you can sell any percentage you like! And if you don’t think selling your mineral rights fits, you can always consider simply selling the royalty interest from a producing well on your property (if you’re lucky enough to have one). If you want to learn more about selling your mineral rights in the Haynesville Shale, or if you’re just interested in what is going on in the Haynesville, give the guys at Caddo Minerals (caddominerals.com) a call. They will answer all your questions, and give you an idea of the value in your minerals all at no charge!