Comstock Resources announced the acquisition of Delaware Basin properties in West Texas along with updated Eagle Ford well results. All five wells were drilled in McMullen County, TX and came online at an average of 809 barrels of oil per day and o.96 mmcf/d. That's initial production rates of 969 boe/d. Comstock also announced its capital budget for 2012. The company will spend $545 million on drilling and completion activities. Over $220 million will be spent drilling new wells and completing Eagle Ford wells that were drilled in 2011. The newly acquired Delaware Basin properties and the Eagle Ford will be the beneficiaries of almost $400 million of the capital budget for 2012. That's a big shift to liquids-rich production from what was historically a gas weighted company.
Since the Company's last report, Comstock has completed five additional successful wells, all of which were drilled on the Company's Hill lease located in McMullen County, Texas. The wells were drilled to vertical depths ranging from 11,022 feet to 11,204 feet and had laterals ranging from 5,004 feet to 7,456 feet. Initial production rates for the five Hill wells were as follows: 651 barrels of oil per day and 0.9 million cubic feet ("MMcf") of natural gas per day or 801 Boepd for the Hill #2H; 801 barrels of oil per day and 1.1 MMcf of natural gas per day or 985 Boepd for the Hill #3H; 715 barrels of oil per day and 1.0 MMcf of natural gas per day or 890 Boepd for the Hill #4H; 926 barrels of oil per day and 1.2 MMcf of natural gas per day or 1,120 Boepd for the Hill "A" #1H and 954 barrels of oil per day and 0.6 MMcf of natural gas per day or 1,048 Boepd for the Hill "A" #2H. All of the reported well results were obtained while following Comstock's restricted choke program where the well's flow is limited with a 16/64 inch choke to minimize pressure draw down from the reservoir.
Comstock also announced a revised 2012 capital budget to include drilling operations on its newly acquired properties in West Texas. Comstock plans to spend approximately $545.0 million in 2012 for drilling and completion activities............Comstock Resources has budgeted to spend $207.3 million in its South Texas region to drill 32 (28.9 net) Eagle Ford shale horizontal wells in 2012 and $14.5 million to complete six wells (5.6 net) drilled in 2011.
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