Comstock, USG form Haynesville joint development venture

Comstock Resources Inc., Frisco, Tex., and USG Properties Haynesville LLC have agreed to jointly develop certain acreage recently acquired by USG that’s prospective for the Haynesville shale in Louisiana and Texas.

Comstock will receive 12.5% working interest in the acreage in consideration for serving as operator and can acquire another 12.5% in each well drilled by reimbursing USG for the well’s related acreage costs.

USG is initially contributing 3,315 net acres to the venture. Comstock estimates that a minimum of 20 wells will be drilled and plans to add a third operated rig in April. Comstock also intends to work with USG to acquire additional acreage for the venture.

With the formation of the venture, Comstock has revised its capital budget for 2017 to $168.5 million and anticipates drilling 24 (18.9 net) Haynesville shale wells in 2017.