Insights from Cinco Energy Management Group

Texas Land and Market Update Q2 2025 | RR Districts 1-6

Written by Randy Nichols | Jul 9, 2025 3:00:00 PM

Originally published in AAPL Landman Magazine 

Rig counts across Railroad Commission Districts 1 through 6 have remained relatively stable. While there has been a slight decrease in activity in the Eagle Ford oil play due to softer oil prices, the Texas Haynesville gas play has seen a noticeable uptick in rig deployments.

Western Haynesville-Bossier Extension Drives Gas Play Momentum

A significant portion of this growth stems from the ongoing development of the Western Haynesville-Bossier extension. Comstock, Mitsui, and Aethon are actively drilling in Leon, Robertson, and Freestone counties, with Comstock holding the largest lease position—an impressive 518,000 acres. The Western Haynesville formation is showing considerable potential, with some initial production rates reaching 30 to 42 MMcf/d. These deep, high-cost wells will take time to prove economically, but the early signs are promising.

Further investment in Haynesville is expected following Tokyo Gas’s acquisition of Rockcliff last year and its recent 70% stake in Chevron’s 71,000-acre position. This move highlights increasing global interest in U.S. natural gas assets.

Eagle Ford Transactions Reflect Shifting Operator Strategies

There were several other transactions of Eagle Ford assets. Crescent Energy acquired Ridgemar’s assets in the play, encompassing 80,000 net acres, for $905 million, Tokyo Gas divested a 25% stake in its Eagle Ford shale gas assets to Shizuoka Gas for $130 million, and Matador Resources exited Eagle Ford entirely, selling its remaining interest for $30 million.

RRDs 1–6: A Powerhouse of Resource Potential

In previous updates, I’ve referred to RRD 1-6 as “The Gift That Keeps on Giving” — and for good reason. This region consistently reveals new and valuable resources, reinforcing its strategic importance. Situated along the Gulf of Mexico, it is poised to become the world’s leading exporter of LNG, while also offering the pore space capacity to sequester all of the CO₂ produced in the United States.

On top of that, its abundant natural gas reserves are fueling the next generation of data centers, cementing the area’s role as a cornerstone of the energy and technology transition.

Lithium Emerges as a New Frontier in Texas Energy

Now, another unexpected opportunity is emerging lithium extraction from brine within the Smackover Formation in Northeast Texas. Recent discoveries have revealed high concentrations of lithium, attracting the attention of major players such as ExxonMobil and Equinor, who are pioneering direct lithium extraction (DLE) technologies.

This new resource is generating a surge in title work. Due to legal ambiguity in Texas regarding whether lithium belongs to the surface or mineral estate, landmen must run both surface and mineral title. Moreover, brine lease negotiations require more nuanced terms than traditional oil and gas leases, adding further complexity.

Looking Ahead: The Expanding Role of Landmen in Resource Development

Lithium may not be the final frontier. Thirteen U.S. states have been identified with potential for mining critical and rare earth elements on private land. As extraction technologies continue to evolve, landmen will play a crucial role in unlocking these new mineral resources through title verification and lease negotiation.