Friday, May 8, 2009

Comstock Results

Comstock Resources reported its quarterly earnings this week and bragged on some of its success in the Haynesville Play, where it has 86,032 gross leased acres. We are following 17 wells, eight of which are producing, four of which are completing and five of which are still being drilled. Most of the activity is in DeSoto Parish, LA, near the Texas state line. As the graphic below shows, wells are coming in with initial production of between 7 and 16 MMcfe/day. I'm sure more results will be coming in soon.

In this quarter, Comstock has successfully completed another six horizontal wells in the Haynesville Play:

  • Bogue A #6H, Waskom Field, Harrison County, TX; vertical depth: 10,858 feet with a 2,600 foot horizontal lateral, 7 frac stages; IP: 7.4 MMcfe/day

  • Hart #1H, Logansport Field, DeSoto Parish, LA; vertical depth: 11,553 feet with a 3,770 foot horizontal lateral, 10 frac stages; IP: 7.2 MMcfe/day

  • Moneyham #1H, Longwood field, Caddo Parish, LA; vertical depth: 10,572 feet with a 3,840 foot horizontal lateral, 10 frac stages with some complications; IP: 6.6 MMcfe/day

  • Headrick #1H, Logansport Field; vertical depth: 11,525 feet with a 4,060 foot horizontal lateral, 10 frac stages; IP: 15.1 MMcfe/day

  • Holmes A #1H, Logansport Field; vertical depth: 11,442 feet with a 4,010 foot horizontal lateral, 10 frac stages; IP: 16.2 MMcfe/day

  • BSMC 12 #1H, Toledo Bend Field, DeSoto Parish, LA; vertical depth: 11,525 feet with a 4,135 foot horizontal lateral; IP 11.6 MMcfe/day

Comstock plans to focus a great deal of energy and capital to complete its 2009 drilling plan. Comstock has budgeted $360 million for 2009 capex, $322 million of which is allocated to E. Texas and N. Louisiana (mostly Haynesville, but some Cotton Valley). The 33 proposed well locations are shown on the graphic below.

The company also provided some interesting technical information about the completions, as shown in the slides below. In the first one, the days to drill each of their wells is shown, varying from 29 to 61 for all horizontal wells.

In another, they present the initial production figures cross-referenced with the lengths of the laterals, the number of stages and the completion design. They seem to have hit on some success with their latest three wells which use a revised completion design of slick gel and a 40/70 proppant. One can't tell if the success of the wells shaded in red on the slide is directly proportional to the completion design, but Comstock believes they have a road map for future completions. Management did admit that part of the success had to do with locating the laterals in a different part of the Haynesville thickness.

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