Haynesville Shale

Comstock Resources Cuts Operated Haynesville Shale Development

Comstock Resources (CRK) announced that the company would end all operated development of its Haynesville Shale properties by March 2012.  The company took the action due to low natural gas prices.

Even with the drilling reduction, Comstock Resources plans to spend $106.8 million in 2012 on its Haynesville Shale properties.  This includes $45.4 million to drill 17 gross or 5.1 net wells and $61.4 million to complete 20 gross or 13.3 net wells during the year.

Comstock Resources revised 2012 capital plan calls for spending approximately $458.0 million for drilling and completion activities, with 77% of the budget spent on oil related projects.

EXCO Resources To Reduce Haynesville Shale Drilling In 2012

EXCO Resources (XCO) announced a 2012 capital budget totaling $710 million, with $585 million allocated to development and completion activities across the company’s portfolio.  The company’s budget reflects a decrease in spending in the Haynesville Shale relative to 2011.

EXCO Resources plans to spend $453 million to develop the Haynesville Shale in 2012, along with an additional $16 million in lease acquisitions and other operations.  The company will operate 13 rigs in 2012 in the Haynesville Shale.

EXCO Resources said that the reduction in cash flow was done in order to “manage our cash flow in the current natural gas price environment.” The company expects to complete all of its lease obligations during 2012 and convert all its acreage to held by production.  

2012 Highlights

• Operated well count - Drill and complete 98 gross or 30.2 net wells.
• Non operated well count – 22 gross or 0.6 net wells.
• Completion of 22 gross or 7.7 net wells drilled in 2011.
• Holly Area – in DeSoto and Caddo Parish, Louisiana - 8 rigs
• Shelby Trough – Nacogdoches, San Augustine and Shelby Counties, Texas - 5 rigs

In the Shelby Trough area, EXCO Resources will focus drilling in areas where previous wells produced in excess of 30 million cubic feet of natural gas per day during initial periods.

Comstock Resources - Haynesville Shale Update - Third Quarter of 2011

Comstock Resources (CRK) reported an operational update on the Haynesville play for the third quarter of 2011. 

Comstock Resources drilled 51 gross or 21.6 net wells in the Haynesville Shale in 2011, and also completed 65 gross or 35.7 net wells during the first nine months of 2011. The company said that the average production rate of wells put onto production in 2011 was 10 million cubic feet of natural gas equivalents per day.

Comstock Resources reported 21 gross or 8.9 net Haynesville Shale wells waiting on completion as of 9/30/2011.

In 2012, the company plans to reduce the company’s operated rig count in the Haynesville Shale to one rig from the current level of three.  The company will spend $169 million of a total $396 million budget as follows:

$104 million – To drill 37 gross or 12.6 net wells.

$65 million – To complete 17 gross or 14.7 net wells drilled in 2011.