Comstock Resources (CRK) held a conference call on August 3, 2010, to discuss the company’s second quarter earnings. The company made some comments on its operations in the Eagle Ford Shale, where Comstock Resources is starting to build an acreage position.
Comstock Resources is focusing on the oil and wet gas areas of the Eagle Ford Shale, like many of its peers in the exploration and production industry.
“We also spent $23 million to acquire 8,000 net acres in the emerging Eagle Ford Shale in South Texas…We are budgeting $150 million for our acreage acquisitions…we expect to spend $104 million to establish our position in Eagle Ford Shale in 2010.”
“We have acquired or in the process of closing on 18,000 net acres that we feel are prospective for development in the emerging Eagle Ford Shale play in Karnes, McMullen, and Atascosa counties in South Texas. We’re focusing primarily on the oil and condensate windows in this play due to the better economics of oil versus natural gas.”
“We hope to acquire additional 10,000 net acres in our focus area. Given expected well spacing of 80,000 acres and an expected per well recovery of 400,000 barrels of oil per well, our acreage could have 67 million barrels of oil equivalent of reserve potential.”
“We plan to move one of our seven operated rigs out of our Haynesville operations to our new acreage in the Eagle Ford late in the third quarter…In 2011 after we have completed our leasing activities, we plan to have a two to three rig program to develop our Eagle Ford Shale acreage.”
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