Comstock Resources announced it will focus 2016 resources on its natural gas assets while reducing spending on the 'un-drillable' Eagle Ford Shale region.
Related: Chesapeake Will Release all Eagle Ford Rigs
In an earnings call this morning, Comstock discussed its 2015 full year results and plans for 2016. Fourth quarter highlights included production volumes of 14.9 billion cubic feet of natural gas and 493,300 barrels of oil. This is an increase of 65% for natural gas over the 2014 Q4.
For its Eagle Ford operations, Comstock completed four horizontal Eagle Ford shale wells (2.2 net) in South Texas which were drilled in 2014 and installed artificial lift on many of the wells in that field. Spending in the region included $42.6 million on the company's Eagleville properties.
In 2016, Comstock plans to focus on its natural gas assets, leaving only a small portion of its budget for the oil rich has allocated $7.3 million for activity in the Eagle Ford Shale.
“Make note that about it, we’re a natural gas company, focused on natural gas with a stellar oil position in the South Texas Eagle Ford, that is HBP, but not really drillable in the oil market that we all live in, versus our Haynesville/Bossier play, we have optionality that is very unusual in this current distressed E&P market.”