Comstock Plans to Spend $450MM on E&P, to Drill Fewer Wells in '09
Comstock plans to spend $450 million in 2009 for development and exploration activities.
Comstock expects to drill approximately 76 (55.9 net) wells in 2009. Comstock will drill fewer wells in 2009 as compared to 2008 but the 2009 drilling program will be focused on the Company's higher return opportunities, including its extensive acreage position in the Haynesville Shale. Comstock's East Texas/North Louisiana operating region accounts for the largest portion of the 2009 budget with forecasted expenditures of $399 million.
Comstock has budgeted to drill 66 (49.1 net) development wells in this region in 2009, which includes forty-three (32.0 net) Haynesville Shale horizontal wells and five (4.5 net) Cotton Valley horizontal wells. Comstock expects to spend $51 million in its South Texas region to drill 10 (6.8 net) wells in 2009.
"Our 2009 drilling program is focused on continued exploitation of our East Texas/North Louisiana acreage position including proving up the emerging Haynesville Shale play and continued development of our properties in our South Texas region," stated M. Jay Allison, Chairman and Chief Executive Officer of Comstock. "We anticipate that our 2009 drilling program will provide for strong reserve growth which will be our focus for this year. Given lower natural gas prices, we plan to defer much of our Cotton Valley development drilling which has been the largest contributor to our production growth in 2008."
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