Comstock to increase drilling budget in 2010

AP News
|
Posted: Dec 16, 2009 2:23 PM

Oil and gas company Comstock Resources Inc. on Wednesday said it plans to spend 8 percent more on its drilling program in 2010 and boost its number of wells from 2009 levels.

The Frisco, Texas-based company expects to spend about $385 million in development and exploration activities mostly in its Haynesville Shale properties in North Louisiana. This compares with November expectations of $355 million for 2009 spending. A smaller portion of the 2010 budget will go toward developing its South Texas region and other properties.

Next year's budget will allow Comstock to add an additional drilling rig in the second quarter of 2010 to the six rigs currently in use in its Haynesville Shale drilling program. It will also support Comstock's plan to drill 59 wells in 2010, up from 52 wells expected for 2009.

"We anticipate that our 2010 drilling program will continue to provide strong reserve and production growth," said M. Jay Allison, CEO of Comstock.

The Haynesville Shale is considered one of the largest domestic natural gas finds in years.

Shares of Comstock rose 65 cents to $40.92 in afternoon trading.