Q1 Drilling for Comstock a success with 35 of 36 Wells
Comstock Resources announced the results to date of its 2008 drilling program. In the first three months of 2008 Comstock drilled 36 wells (23.2 net). Thirty-five of the wells drilled were successful and one was a dry hole.
Onshore, Comstock drilled 31 (19.6 net) successful development wells in the first quarter of 2008. Comstock drilled 26 successful wells (16.3 net) in its East Texas/North Louisiana region which have been tested at an average per well initial production rate of 2.1 Mmcfe per day. At March 31, 2008 Comstock had four additional wells in this region that were being drilled which are part of Comstock's 84 well drilling program planned in this region for 2008. In South Texas, Comstock drilled four successful wells (3.5 net) and had one exploratory dry hole (0.5 net) during the first quarter of 2008. The successful wells were tested at an average per well initial production rate of 3.9 Mmcfe per day. Three of the wells were in the Javelina field and the other was a successful exploratory well. Comstock also drilled two successful wells (0.3 net) in the San Juan Basin in New Mexico during the first quarter.
Comstock also announced that it plans to increase its 2008 budget for its onshore drilling program to $322 million from the $278 million previously announced. The increase is primarily attributable to increased spending in its East Texas/North Louisiana region on acreage acquisitions and drilling related to the Company's Haynesville shale program. The Company estimates that it has 65,500 (50,400 net) acres that are prospective for Haynesville shale development. The onshore drilling program now includes 105 (70.2 net) development wells and 12 (7.7) exploratory wells. Capital spending in the Company's East Texas/North Louisiana operating region is forecasted to be $200 million, which includes 84 total wells (57.6 net), nine of which will be horizontal wells. Comstock also expects to spend $115 million in its South Texas operating region, including 28 wells (19.5 net). The remaining $7 million will be spent on Comstock's other onshore regions.
Comstock's offshore operations are conducted by its 49% owned subsidiary, Bois d'Arc Energy, Inc. Bois d'Arc has drilled three successful wells (2.6 net) so far in 2008. The OCS-G 24922 #1 at Ship Shoal block 97 was drilled to a depth of 12,983 feet and encountered 71 net feet of pay in two high quality sands. This well was put on production in February at a rate of 10.3 MMcfe per day. Bois d'Arc has a 78% working interest in this well. The OCS-G 24926 #1 was drilled to test the "Perch" prospect at Ship Shoal block 120. This well was drilled to a depth of 5,000 feet and encountered 94 feet of pay in eight commercial sands. First production for the well is expected in the second quarter. Bois d'Arc has a 100% working interest in this well. Bois d'Arc also drilled the OCS-G 24977 #1 at South Pelto block 21 to test the "Chinook" prospect. This exploratory well was drilled to a depth of 18,250 feet and encountered 38 feet of pay in the objective sand. First production for the well is expected July 1, 2008. Bois d'Arc has a 79% working interest in this well. Bois d'Arc is currently drilling a 16,500 foot exploratory well to test its "Kelsie" prospect at Ship Shoal block 95. Bois d'Arc has a 100% working interest in this well.
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