Comstock Resources Announces Reserves as of Dec. 04
Comstock Resources reports that as of December 31, 2004, its total proved oil and gas reserves were 628.8 billion cubic feet of natural gas equivalent ("Bcfe"), including 15.9 million barrels of crude oil and 533.6 billion cubic feet of natural gas. Proved developed reserves account for approximately 67% of total proved reserves. Comstock operates 80% of its proved reserve base. The estimated present value of Comstock's proved reserves, utilizing a 10% discount rate, was $1.5 billion. The year-end market prices utilized to determine proved reserves were $42.17 per barrel of oil and $5.86 per thousand cubic feet of gas.
Comstock's proved reserves include only Comstock's 59.9% share of Bois d'Arc Energy, LLC's proved reserves in the Gulf of Mexico. Bois d'Arc Energy's total proved reserves at December 31, 2004 were 305.3 Bcfe, consisting of 18.7 million barrels of crude oil and 192.9 billion cubic feet of natural gas. Bois d'Arc Energy's proved reserves are 83% proved developed and have an estimated present value, utilizing a 10% discount rate, of $1.0 billion. Bois d'Arc Energy operates 97% of its proved reserve base.
Comstock added 54.6 Bcfe of proved reserves during 2004, replacing 128% of its 2004 production. Comstock acquired 41.0 Bcfe of proved reserves in its acquisition from Ovation Energy, LP and added 37.5 Bcfe of proved reserves from discoveries and field extensions. During 2004, Comstock also produced 42.7 Bcfe, contributed 201.6 Bcfe to Bois d'Arc Energy, acquired 176.3 Bcfe related to its 59.9% ownership of Bois d'Arc Energy and had upward revisions to prior reserve estimates of 1.4 Bcfe.
Costs incurred during 2004 totaled $210.4 million, including $94.6 million
for development activities, $51.6 million for exploration activities,
$62.7 million for acquisitions and $1.5 million for asset retirement
obligations. In 2004, Comstock's finding and development cost averaged
$2.63 per Mcfe (excluding the reserves contributed to Bois d'Arc Energy). For
the three years ending in 2004, Comstock's finding and development cost
averaged $1.79 per Mcfe. Of Comstock's 2004 development and exploration costs
incurred, 65% was invested in developing proved undeveloped reserves booked in
prior years. The large percentage of development expenditures in 2004
contributed to the higher finding costs in 2004.
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