Comstock Resources Inc. released one frac crew and two of its seven operating drilling rigs in its legacy Haynesville area in response to weak natural gas prices, the company said mid-February. Two of the five remaining drilling rigs will continue to be deployed in the Western Haynesville play.
As a result, Comstock plans to spend about $750-850 million in 2024 on its development and exploration projects to drill 46 (35.9 net) operated horizontal wells and to turn 44 (38.2 net) operated wells to sales this year.
The operator expects to spend $125-150 million on its Western Haynesville midstream system, which will be funded by its midstream partnership (OGJ Online, Oct. 30, 2023).
Production for first-quarter 2024 and full year 2024 is guided to 1,425-1,525 MMcfed.
2023
Comstock drilled 67 (55.5 net) operated horizontal Haynesville/Bossier shale wells in 2023, which had an average lateral length of 10,796 ft. Comstock also turned 74 (55.7 net) operated wells to sales in 2023, which had an average initial production rate of 25 MMcfd. Production for the quarter was 1,529 MMcfed, up from 1,445 MMcfed in the previous year’s fourth quarter.
Cash flow from operations for fourth-quarter 2023 was $207 million. Adjusted net income for the quarter was $28 million, down from $288 million in fourth-quarter 2022.
