Comstock Resources adds to Haynesville acreage with joint development venture

FRISCO, Texas -- Comstock Resources has entered into a joint development venture that will target the Haynesville shale.

Comstock and USG Properties Haynesville (USG) have entered an agreement to jointly develop certain acreage prospective for the Haynesville shale in Louisiana and Texas, which has recently been acquired by USG. Comstock will operate the wells to be drilled and will manage the drilling program.

Comstock will receive a 12.5% working interest in the acreage in consideration for serving as the operator, and it can acquire an additional 12.5% working interest in each well drilled by reimbursing USG for the related acreage costs of the well being drilled.

Initially, USG is contributing 3,315 net acres to the venture. Comstock estimates that a minimum of 20 wells will be drilled to develop this acreage, and it plans to add a third operated drilling rig in April 2017 to drill the joint venture wells. Comstock also intends to work with USG to acquire additional acreage for the joint development venture.

With the addition of the joint development 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.