Frisco

The dry gas Haynesville Shale will have its day again — when gas prices have a $5 handle — and Comstock Resources Inc. will be ready, management of the Frisco, TX-based producer told financial analysts last week.

The dry gas Haynesville Shale will have its day again — when gas prices have a $5 handle — and Comstock Resources Inc. will be ready, management of the Frisco, TX-based producer told financial analysts Tuesday.

Frisco, TX-based Comstock Resources Inc. has joined the ranks of producers that are pulling back from natural gas drilling to direct more resources to oil.

Frisco, TX-based Comstock Resources Inc. said it bought 20.2 Bcfe of proved gas and oil reserves in the Las Hermanitas field in Duval County in South Texas from Denali Oil & Gas Partners LP, Stalker Energy LP and other working interest owners for $67.2 million. The properties include three producing wells that are producing 6.4 MMcf/d of gas. Comstock said 43% of the proved reserves are in the proved developed category. The undeveloped proved reserves are in four locations. Future development costs are estimated to total $17.5 million. In addition to the proved reserves, Comstock estimates that the properties have probable reserves of 14.7 Bcf in eight additional drilling locations. Comstock also has identified an additional six possible drilling locations with an 8 Bcf of reserves. “This transaction will build up our South Texas operating region and has substantial upside beyond the proved reserves from the 18 identified drilling locations,” said Comstock CEO M. Jay Allison. The transaction is expected to close in September 2006 and will be funded with borrowings under Comstock’s bank credit facility.

Frisco, TX-based Comstock Resources is contributing about 300 Bcfe of estimated proved Gulf of Mexico oil and gas reserves and about $102.7 million in related debt to newly created exploration and production venture Bois d’Arc Energy LLC for a 59.9% stake in the new company.

Frisco, TX-based Comstock Resources is contributing about 300 Bcfe of estimated proved Gulf of Mexico oil and gas reserves and about $102.7 million in related debt to newly created exploration and production venture Bois d’Arc Energy LLC for a 59.9% stake in the new company.