Comstock Resources Q4 Report

Company Reports 86% Increased Production for 2014
Comstock Wells in Eagle Ford

Comstock Wells in Eagle Ford | click to enlarge

Comstock Resources released its Q4 earnings report and confirmed their spending plan for 2015.

Comstock’s loss of $55.1 million in the last three months of the year are in contrast to a record 86% increase growth in oil production. Production in 2014 was at 4.3 million barrels, compared to 2.3 million barrels produced in 2013.

Looking to the new year, Comstock will be scaling back its drilling program due to the significant drop in oil prices.

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CFO Roland Burns reported that “With the rapid fall in oil prices, we have shutdown our oil drilling program in late December, but we do have eight additional wells in our South Texas Eagle Ford and nine additional wells in our East Texas Eagle Ford area that we expect to put on production in the first quarter of 2015. So we do expect a little more oil growth in the first quarter, but then we expect oil to decline later in the year with no additional drilling budgeted. For all of 2015, we’re expecting oil production to average between 9,500 and 10,500 barrels per day.”

2014 Eagle Ford highlights:

  • Successful drilling program in South Texas Eagle Ford shale drove oil growth in 2014
  • 68 out of 68 wells drilled were successful
  • Placed 91 (61.3 net) new Eagle Ford shale wells on production
  • Four wells drilled in 2014 to be completed in 2015

Read more about Comstock Resources in the Eagle Ford 


Comstock – KKR Eagle Ford Partnership Agreed at $25,000/acre

KKR agrees to pay up to $230+ million for a 1/3 stake in 28,000 net acres
Comstock Eagle Ford Map

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Comstock and KKR (Kohlberg, Kravis, Roberts & Co) have signed a participation agreement in the Eagle Ford. KKR will have the right to participate for 1/3 of Comstock’s interest in 28,000 net acres across Atascosa, Frio, Karnes, La Salle, McMullen, and Wilson counties. In exchange, KKR will pay the equivalent of $25,000 per acre through a drilling carry for each acre acquired. Comstock plans for development with spacing of 80-acres per well.

KKR has committed to the drilling carry equivalent of $25,000 per acre for the next 100 wells in Comstock’s planned development. The private equity partner will have the ability to participate in additional Comstock wells under the same terms. [Read more…]