Comstock Resources Inc. is expanding a joint venture (JV) with USG Properties Haynesville LLC (USG) to build its inventory in East Texas and North Louisiana and drill more extended lateral wells.
Initial activities by the JV partners, launched earlier this year, focused primarily in Caddo Parish, LA, where to date 6,821 net acres are targeting the Haynesville Shale. Thirty-four extended lateral wells have been drilled in the joint development area to date.
Comstock and USG drilled three 10,000-foot lateral wells with a fourth underway. Completion activity is to begin in November.
Comstock has the right to participate for a 25% working stake in the wells drilled on USG's acreage, and it may increase working interest participation in future wells. In turn, USG is participating in four Comstock wells targeting the Bossier formation in Sabine Parish.
Through the partnership ,Comstock has earned an additional 640 acres adjacent to its Toledo Bend field and was granted a royalty reduction to 18.75% from 25%. It also was assigned an additional 12.5% working interest in the wells.
USG’s participation has allowed Comstock to increase its activity levels and prove up its Bossier inventory.
USG, based in Austin, TX, recently agreed to participate in a drilling program on Comstock's acreage in Harrison County in East Texas that targets the Haynesville. Comstock, which has 34 well locations in the county, has about 4,000 net acres in the Waskom field and wants to bolt-on acreage to drill extended laterals.