Friday, December 19, 2014

Man Bites Dog: Comstock Moving Two Rigs From Eagle Ford to Haynesville!

I don't think I've ever typed these words, but a company is moving rigs from the Eagle Ford Shale to the Haynesville.  Comstock Resources announced this week that it is halting exploration in the Tuscaloosa Marine Shale and the Eagle Ford and is restarting ops in the Haynesville in early 2015.  Comstock will drop its sole rig in the Tuscaloosa, drop two rigs in the Eagle Ford and move two of the Eagle Ford rigs to north Louisiana.

Quoting the press release:
"Comstock believes that improved completion technology, including longer laterals, will provide strong returns on drilling projects at current natural gas prices. 
 "Comstock has budgeted to drill 19 (18.6 net) horizontal wells in 2015. The Company expects to spend $161 million for drilling 14 (14.0 net) Haynesville/Bossier shale natural gas wells and $34 million for drilling five (4.6 net) wells on its East Texas and South Texas Eagle Ford shale acreage...Comstock plans to refrac ten of its existing Haynesville shale producing wells as part of the 2015 program."
My, how things have changed.  Not that the condition will be permanent, but suddenly drilling for gas is slightly more attractive than drilling for oil in many formations with the low oil prices.

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