Thursday, December 16, 2010

Comstock's 2011 Capital Budget

Comstock Resources today announced its 2011 capital budget of $522 million for drilling and exploration that will be split between the Haynesville Shale and the Eagle Ford Shale.  The company plans to drill 45 gross wells (27.5 net) in the Haynesville Shale this year and spend $110.2 million of the $522 million budget to pay a dedicated completions crew to complete the company's inventory of 25 Haynesville wells (21.6 net) drilled but not completed in 2010.

The company currently operates six rigs, including five in the Haynesville Play.  It will drop one of the rigs (presumably in the Haynesville) in the first quarter of 2011 and move one of the Haynesville rigs to the Eagle Ford mid-year.  (Comstock plans to drill 22 wells in the Eagle Ford in 2011.)  The implication is that by the third quarter Comstock will only operate three rigs in the Haynesville Shale as the company shifts its attention to the liquids-rich Eagle Ford.

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