Haynesville Shale Review

2008 - 2020July 2020

Kurt Mire, P.E.

16 Counties

Haynesville Shale – Horizontal Wells2008 - 2020

4,758 Wells

Haynesville Shale & Bossier Shale

Haynesville Shale

Bossier Shale

160 BCF / Section

1000’ apart

Desoto Parish

Panola County

Haynesville Horizontal DevelopmentProduction History

9.5 BCFD

21.1 TCFWell Count

Daily Rate BCFD

2020 Est from 4 months

Activity by County

2020 Est from 4 months

2020 Est from 4 months

2020 Est from 4 months

3300 #/FT

Delaware 2180 #/FT

Midland 1800 #/FT

Eagle Ford 2300 #/FT

Utica 1850 #/FT

Haynesville

More proppant yields more reserves

Moomaw Analysis

Well Performance by County2019 - 2020

More proppant yields more reserves

Most Active Operators2019 - 2020

July 2020

HA RA GLD 361 & 12-15-15HC #1ChesapeakeDesoto Parish

Initial Production 45 MMCFD

EUR 19 BCF

3,790 #/Ft

8,245’ Lateral Length

B Factor 0.65

July 2020

HA RB SUN; FARGESON 29-20 #1Indigo MineralsDesoto Parish

Initial Production 25 MMCFD

EUR 22 BCF

4,770 #/Ft

8,520’ Lateral Length

B Factor 0.70

New Well Reserves & Economics Lateral 7,800 feet Drill & Complete Cost $8,600,000 Operating expense $0.20 /MCF Transportation $0.23 / MCF Gas Price: July 2020 NYMEX NRI: 80% Reserves: 13.9 BCF IP 20 MMCFD

Haynesville Shale Drilling Type Curve

Initial decline 60.5%

B Factor 0.5

Payout: 2 years IRR 36% PV10: $3.7 million

Rigs 07-23-2020Total 35 Active rigs

Current Rig Activity

Desoto 8

Harrison 5

Red River 5

Panola 4

7/20/2020

35 rigs

Ark-La-Tex

7/20/2020

Eagle Ford: $8,045

Permian: $23,957

Ark-La-Tex Market Analysis (7/20/2020)

July 2020

Comstock Resources

Opex/Lifting $0.23/MCF

Gathering/Trans $0.23/MCF

July 2020

July 2020

Gas prices look better for next year

Rig count has stabilized and increasing

Drilling costs are going down

Reserves per well continue to increase

Strong electric demand growth

Outlook?NYMEX Gas

Outlook?

July 2020

www.vivelafrack.com

July 2020