Comstock Resources, Inc. Expands Haynesville Acreage Joint Development Venture
October 11 2017 - 6:45AM
COMSTOCK
RESOURCES, INC. EXPANDS HAYNESVILLE
ACREAGE JOINT DEVELOPMENT VENTURE
FRISCO, TEXAS,
October 11, 2017 - Comstock Resources, Inc. ("Comstock" or the
"Company") (NYSE: CRK) today announced that it has expanded its
joint development venture with USG Properties Haynesville, LLC
("USG").
The initial activities of the
joint development program have been focused primarily in Caddo
Parish, Louisiana where to date USG had acquired 6,821 net acres
targeting the Hayneville shale, allowing Comstock and USG to drill
34 extended lateral wells. Comstock and USG have drilled
three 10,000 foot lateral wells so far and are currently drilling a
fourth well. Completion operations on these wells will
commence in November. Comstock has the right to
participate for a 25% working interest in the wells drilled
on USG's acreage, and may increase this working interest
participation in future wells.
USG will also participate in four
wells being drilled targeting the Bossier formation in the
Company's acreage in Sabine Parish, Louisiana. USG will
pay Comstock for the right to participate for 50% of Comstock's
working interest in each of the four wells. Comstock will be
paid a current value for each location for acreage and
infrastructure related to the well location. The financial
arrangements provide for an additional performance payment to the
Company for each well that meets or exceeds the Company's
production target. Comstock has earned a lease on an
additional 640 acres adjacent to its Toledo Bend field, was granted
a reduction in the royalty on these wells from 25% to 18.75%, and
was assigned an additional 12.5% working interest in the
wells. The participation by USG allowed Comstock to increase
its activity level resulting in the royalty relief, additional
acreage and working interest. These wells will also allow the
Company to prove up its substantial inventory of Bossier shale
projects. Comstock's Bossier shale well drilled in 2015
exceeded the production goal established for these four
wells.
USG also recently agreed to
participate in a drilling program on certain of Comstock's acreage
in Harrison County, Texas that will target the Haynesville
shale. Comstock has approximately 4,000 net acres in its
Waskom field in Harrison County, Texas and is pursuing additional
add-on acreage to allow the drilling of extended lateral
wells. Comstock has 34 Haynesville shale locations on this
acreage. The participation of USG will allow the Company to
acquire additional acreage to complement its existing acreage,
which will add additional drilling locations to the Company's
inventory. Under the participation agreement entered into by
the Company and USG, and similar to the Sabine Parrish
arrangements, Comstock will be paid a current value for each
location for acreage and infrastructure related to the well
location. The financial arrangements provide for an
additional performance payment to the Company for each well that
meets or exceeds the Company's production target.
This press release may contain "forward-looking statements"
as that term is defined in the Private Securities Litigation Reform
Act of 1995. Such statements are based on
management's current
expectations and are subject to a number of factors and
uncertainties which could cause actual results to differ materially
from those described herein. Although the Company believes
the expectations in such statements to be reasonable, there can be
no assurance that such expectations will prove to be
correct.
Comstock Resources, Inc. is an independent energy company
based in Frisco, Texas and is engaged in oil and gas acquisitions,
exploration and development primarily in Texas and Louisiana.
The Company's stock is
traded on the New York Stock Exchange under the symbol
CRK.
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Comstock Resources, Inc via Globenewswire
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