Comstock and the TMS - 3rd Quarter Report
Comstock Resources management, mostly represented by J. Allison, Chairman and CEO, delivered a 3rd quarter operating report Tuesday at 10 a.m.
The TMS wasn’t prominent in the discussion, but I made a few notes that may be of interest.
First, Comstock continues to increase its leaseholdings in the play. Current holdings are 71,000 acres and plans are to increase to 75,000 acres by the end of 2014.
The company is currently drilling the CMR Foster Creek 28-40 #1H in Wilkinson County, Mississippi. This well is located near to the Goodrich Crosby 12H-1. This drill is 4,500’ into a planned 7,500’ lateral.
Plans are to drill the nearby CMR Foster Creek 30-31 #1H next, then to move to the Meeks 56 #1H in St. Helena Parish.
There have been questions surrounding the lengthy drilling time involved in the CMR Foster Creek 28-40H-1. Management answered this question today by explaining they went ahead with this first well to perform its fair share of scientific studies (coring, etc…). Assuming 30 days of scientific drilling and assuming this well is completed by the 12th, this would put this first drill at 60 days or less. Obviously, this is a bit long, but for a first well with some early drilling issues, perhaps not too bad.
Management was asked about the viability of the TMS and what would be needed to make the play a success and the response was very interesting.
Basically, Comstock entered the play sooner than originally planned due to the success of Goodrich and Encana early in 2014. Comstock is sold on the prolific quality of the shale and is focused on improving repeatability and bringing down the costs. There was a quiet confidence in the likelihood for success in the play and Comstock management believes the TMS is a “good bet” going forward.