Wednesday, October 20, 2010

Comstock Experiences Fracking Delays

Comstock Resources has found itself on the wrong side of the shortage of high pressure pumping services required for completing Haynesville Shale wells.  The company reported yesterday that it has an inventory of 26 drilled but uncompleted Haynesville wells.  Comstock needs to tune into Petrohawk Energy's experiments to modify its well design to allow for lower pressure pumps in the completion process.

Comstock has struck an agreement to get 14 of the drilled wells in inventory completed before year end, but with six rigs drilling the play, inventory will build again.  The company will drill another ten uncompleted wells before year end and carry 22 uncompleted wells into 2011.  But Comstock also announced an agreement with a service provider to have a crew dedicated to Comstock in the first part of 2011 to help complete the inventory of drilled wells and keep the company's 2011 drilling/completions plan on pace.

Not only do gas prices suck, some guys can't even get their wells completed.  What's a company to do?  Get the drilling rigs out of Dodge, of course.  Comstock will drop one of its six Haynesville rigs in November 2010 and is considering moving another one to the popular Eagle Ford Shale in 2011.  We almost certainly will see a lower Haynesville capex estimate from Comstock for 2011 compared to previous years.

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