Thursday, February 11, 2010

Comstock: All-In on Haynesville in 2010

Comstock Resources reported its quarterly earnings last week and provided a pretty good update of the company's activities in the Haynesville Shale.  What stands out is how important the Haynesville production will be for the company.  Comstock has 86,000 gross Haynesville acres and 73,000 net acres, divided 51K in Louisiana and 22K in Texas.  Most of the company's drilling activities have been on the Louisiana side in DeSoto Parish, as shown on the second slide.

Comstock also touted its Middle Bossier (Comstock calls it "Upper Haynesville") acreage in the call, although it doesn't have any reportable results.  The company believes 52,000 gross acres (46,000 net) are prospective for Mid-Bossier Shale, as shown on the map below.  Comstock is using a 5 Bcfe EUR for its Mid-Bossier acreage, same as it does for its Haynesville property.  The company plans to drill up to 15 Mid-Bossier wells in 2010, mostly in the South Toledo Bend (DNR designation: Converse) and North Toledo Bend Fields (DNR: Benson and Logansport).  The first Mid-Bossier well to surface in 2010, which is expected to be completed in March, is in the South Toledo Bend Field.  (It wasn't specifically stated in the call, but I think Comstock is referring to the Converse Field in Sabine Parish for this first well.  The only Comstock well that is being completed in that area is the Sustainable Forests 3 #1, serial #240372, S10/T8/R13. I'll keep an eye on this.) 

Comstock is going all-in on the Haynesville in 2010 with a $386 million, or 96% of the company's capital budget for the year dedicated to the play.  The company plans to drill 56 total (gross) Haynesville/Mid-Bossier wells in 2010 and all but three of them will be in Louisiana, with a concentration in the Logansport and North Toledo Bend Fields.  The budget summary and drilling map are below (the Waskom and Blocker wells are in TX).

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