Monday, January 30, 2012

See Ya Later, Comstock

Add Comstock Resources to the growing list of companies cutting way back on natural gas and Haynesville Shale operations.  In a press release today, the company said that it has reevaluated its 2012 drilling plans to reduce the company's exposure to gas.  In 2011, Comstock reduced its Haynesville rig count from seven to two by sending two rigs to the Eagle Ford Shale and releasing three.  The remaining two rigs will drill a total of three wells in the first quarter of 2012 and then be shipped west Texas to drill for oil.

Comstock will spend $106.8 million in the Haynesville in 2012, $45.4 to drill 17 wells (5.1 net) (as noted above, only three will be Comstock operated) and $61.4 million to complete 20 (13.3 net) wells from its 2011 backlog.   Outside of participating in non-operated wells, I doubt we will see Comstock again until gas prices start to recover.

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