Comstock Resources (CRK) held a conference call on November 2, 2010, to discuss the company’s earnings report for the third quarter of 2010. During the call, Comstock Resources made comments on its operations in the Haynesville Shale.
Comstock Resources, like many operators in the Haynesville Shale, had trouble securing enough hydraulic fracturing capacity to complete its program. The company reported 26 uncompleted wells at the end of the third quarter of 2010.
“We continue to have strong results in our Haynesville Shale drilling program; we drilled 58 successful wells including 54 horizontal Haynesville and Bossier Shale wells in the first nine months of this year.”
“We got off track from the strong production growth we had in the first two quarters of this year, due to the unavailability of high-pressure pumping services that are needed in order for us to complete our Haynesville Shale wells.”
“We reported earlier that we have secured completion services, starting in the fourth quarter, which will allow us to timely complete the Haynesville Shale wells we are currently drilling and begin to address the backlog of 26 wells waiting on completion that we had at the end of the third quarter.”
“Despite the production setback, we are anticipating strong reserved growth this year driven by our Haynesville Shale drilling program… We think our Haynesville shale program could add 400 to 500 Billion cubic feet equivalent of proved reserves in 2010.”
“Our East Texas/North Louisiana region averaged a 134 million per day with…85 million per day coming from Haynesville Shale wells. The Haynesville wells made up 45% of our total rate.”
“We plan on releasing another rig this month from our Haynesville program and we are considering to releasing two more rigs as we determine what we want to spend on our 2011 CapEx program.”
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