Comstock's Best Eagle Ford Wells Came Online in McMullen County in 2013

February 17, 2014 Kirk Eggleston

In 2013, Comstock completed 63 gross (42 net) Eagle Ford Shale wells, including six wells (3.8 net) drilled in 2012. Completed Eagle Ford Shale wells had an average initial production (IP) rate of 780 boe/d.

Best Producing Comstock Wells - McMullen County, TX

Comstock's best wells in the Eagle Ford were drilled in McMullen County, TX. Average boe/d results for the six best wells are listed below:

Gloria Wheeler C #3H - 1,340 boe/d
Gloria Wheeler C #1H - 1,219 boe/d
Gloria Wheeler D #4H - 1,113 boe/d
Gloria Wheeler A #4H 1,066 boe/d
Gloria Wheeler D #3H 1,054 boe/d
Gloria Wheeler C #2H 1,025 boe/d

All six wells produced more than 1,000 boe/d.

Comstock Company-Wide Drilling and Expenditures

During 2013, Comstock spent $343.6 million on its continuing development and exploration activities and $137.0 million on acreage acquisition costs. Comstock drilled a total of 75 horizontal oil wells (51.6 net) and two horizontal natural gas wells (2.0 net) across the company's assets.

Of the $137 million spent on acquisitions, the company spent $66.5 million on 70% of Ursa Resources’ interest in Eagle Ford assets in Burleson and Washington counties. The deal included one well producing 433 boe/d and 32,000 gross (20,000 net) acres.

Comstock had ~6,300 b/d of crude oil production in 2013. That's up 29% from 2012 when production was ~4,900 b/d. Oil and gas sales increased by 7% in 2013 to $422.6 million from $394.6 million in 2012.

Comstock 2013 Highlights

63 gross (42 net) Eagle Ford Shale wells completed
75 horizontal oil wells (51.6 net) and two horizontal natural gas wells (2.0 net) drilled
Average Eagle Ford completed well had an IP rate of 780 boe/d
Highest producing well was drilled in McMullen County - Gloria Wheeler C #3H - 1,340 boe/d
Spent $343.6 million on its continuing development and exploration
Invested $137.0 million on acreage acquisitions
Crude oil sales volume grew to ~6,300 b/d

Comstock Resources Fourth Quarter Delays Push Eagle Ford Growth Into 2014

January 23, 2014 R.T. Dukes

Comstock Resources planned to complete 18 gross (12 net) wells in the Eagle Ford between November and December of 2013.

Delays in completing the wells forced longer shut-ins for adjacent wells and the new wells didn't reach first production until late in December and January.

Comstock brought 10 gross (7.3 net) Eagle Ford wells to production in the last week of December and added 9 gross (6.3 net) in early January of 2014.

Also Read: Comstock Focused on the Eagle Ford - Planning to Spend $400 M in 2014

Current production as of January 21st was 10,000 b/d of oil and the company had 23 gross (17.2 net) Eagle Ford wells waiting to be completed.

Eagle Ford Drives Comstock's Reserves Growth

Development in the Eagle Ford helped Comstock grow proved reserves to almost 22 million bbls and 453 Bcf. Comstock added 5.3 million barrels and 5 Bcf of reserves in the Eagle Ford in 2013.

Read more about Comstock's latest expansion in the region: Comstock - Ursa Reach Eagle Ford Deal Worth $66.5 Million

Overall, Comstock is reporting proved reserves of 584 Bcfe at December 31, 2013. That compares favorably to 551 Bcfe the company reported on December 31, 2012.

Read the full press release at comstockresources.com

Comstock Resources Focused on the Eagle Ford in 2014 - Almost $400 Million Planned

December 18, 2013 R.T. Dukes

Comstock Resources will spend $394 million of the company's $450 million 2014 budget in the Eagle Ford.

The company will spend $264 million drilling 59 gross (40.2 net) wells in the South Texas Eagle Ford, $80 million completing wells in the South Texas area, and $50 million to drill 10 gross (5.6 net) East Texas Eagle Ford wells (Burleson County) for a total of $394 million.

Comstock Resources East Texas Eagle Ford Map

The East Texas Eagle Ford acreage located in Burleson County was acquired from Ursa Resources in late November 2013.

Outside of the company's drilling budget in the Eagle Ford, Comstock will spend $27 million in the Tuscaloosa Marine Shale and $29 million on facilities, recompletions, other capital projects.

As a result of budget allocations, oil production is expected to grow to 11,200-12,600 b/d and natural gas production is expected to fall to ~115 mmcfd.

Read the company's full press release at comstockresources.com

Comstock - Ursa Resources Reach Eagle Ford Deal Worth $66.5 Million

November 26, 2013 R.T. Dukes

Comstock Resources has announced plans to acquire 70% of Ursa Resources' interest in Eagle Ford assets in Burleson and Washington counties for $66.5 million.

The deal includes one well producing 433 boe/d and 32,000 gross (20,000 net) acres. Not many wells have been drilled in the immediate vicinity, but good wells have been drilled to the northeast and northwest.

Comstock will move a rig into the area in 2014 and is planning to drill 10 wells over the next year.

“This acquisition will allow us to extend our successful South Texas Eagle Ford shale program into East Texas,” stated M. Jay Allison, CEO. “The East Texas Eagle Ford acquisition combined with the acreage the company is acquiring in the Tuscaloosa Marine Shale play will complement our successful oil drilling program in South Texas by adding multiple years of additional oil drilling inventory for Comstock.”

The deal supplements Comstock's 31,800 gross (26,500 net) acreage position in Atascosa, Frio, La Salle, and McMullen counties. Comstock estimates its Southern Eagle Ford assets have potential for 300 locations, 450,000-550,000 boe EURs, and resource potential of 70 million boe.

Just one week prior, Comstock announced the acquisition of 53,000 net acres targeting the Tuscaloosa Marine Shale in Louisiana and Mississippi for $54.5 million. The two deals combined significantly expand the company's potential to grow oil production.

Read the full Eagle Ford acquisition press release at comstockresources.com

Comstock Doubles Its Eagle Ford Rig Count In the Second Quarter

July 31, 2013 R.T. Dukes

Comstock Resources ran three rigs in the Eagle Ford in the first quarter 2013 and ramped up to six rigs running at the end of the second quarter. The increase in activity is no surprise. Comstock will drill as many wells this year (72 gross) as the company had drilled in the previous three years combined.

Since the beginning of the year, Comstock has completed 25 gross (15.4 net) wells in the Eagle Ford. The average well has come online with an initial production rate of 796 boe/d. Four wells in McMullen County have come online at more than 1,100 boe/d, while wells in Atascosa County have come online at rates of less than 500 boe/d.

Eagle Ford production grew 26% from 4,500 boe/d in the first quarter to 5,800 boe/d in the second quarter. Expect much of the production growth to carry over into 2014. Comstock plans to complete ~30 wells in the second half of the year, but 12 of the wells will come online as part of multi-well pads that will not be completed until December.

Well costs continue to fall in the play. The average Eagle Ford well for Comstock cost $11.4 million in 2010 and the equivalent well is estimated to have a $7.7 million cost today. The cost savings has come even though Comstock has increased the lateral length utilized from almost 4,600 ft to over 6,800 ft over and increased the amount of proppant used in each completion from 4.4 to 8.9 million pounds.

Comstock also closed the sale of West Texas assets to Rosetta Resources in the second quarter for $823 million.

Read the full press release at comstockresources.com