Comstock, USG form Haynesville joint development venture

Comstock Resources Inc., Frisco, Tex., and USG Properties Haynesville LLC have agreed to jointly develop certain acreage recently acquired by USG that’s prospective for the Haynesville shale in Louisiana and Texas.

Comstock will receive 12.5% working interest in the acreage in consideration for serving as operator and can acquire another 12.5% in each well drilled by reimbursing USG for the well’s related acreage costs.

USG is initially contributing 3,315 net acres to the venture. Comstock estimates that a minimum of 20 wells will be drilled and plans to add a third operated rig in April. Comstock also intends to work with USG to acquire additional acreage for the venture.

With the formation of the venture, Comstock has revised its capital budget for 2017 to $168.5 million and anticipates drilling 24 (18.9 net) Haynesville shale wells in 2017.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...