FRISCO, Texas, May 5 /PRNewswire-FirstCall/ -- Comstock Resources, Inc.('Comstock' or the 'Company') (NYSE: CRK) today reported financial andoperating results for the quarter ended March 31, 2008.
First Quarter 2008 Financial Results
Comstock reported net income of $41.1 million or 91 cents per dilutedshare for the three months ended March 31, 2008 as compared to 2007's firstquarter net income of $12.6 million or 28 cents per diluted share.
The outstanding first quarter financial results reflect strong marketprices for oil and natural gas and the Company's production growth fromacquisitions, onshore development drilling and offshore explorationactivities. Comstock's production in the first quarter of 2008 increased 25%to 25.1 billion cubic feet equivalent of natural gas ('Bcfe') as compared toproduction of 20.0 Bcfe in the first quarter of 2007. Onshore production hasincreased 44% and offshore production was up 6% from the first quarter of2007. The first quarter average daily production rate of 275 million cubicfeet of natural gas equivalent ('Mmcfe') also has increased 11% from thefourth quarter production rate of 249 Mmcfe per day. The Company's realizednatural gas price averaged $8.46 per Mcf in 2008's first quarter, 23% higherthan the $6.89 per Mcf in 2007's first quarter and $1.17 per Mcfe above thenatural gas price realized in the fourth quarter of 2007. Realized oil pricesin the first quarter of 2008 averaged $93.93 per barrel, 73% higher than the$54.15 per barrel for 2007 and $7.92 per barrel above the oil price realizedin the fourth quarter of 2007. Driven by the 25% increase in production andthe much stronger oil and natural gas prices, first quarter 2008's oil and gassales of $241.0 million increased 65% from 2007's first quarter sales of$146.0 million. Operating cash flow (before changes in working capitalaccounts) generated by Comstock in 2008's first quarter of $170.5 million was70% higher than 2007's first quarter cash flow of $100.5 million. EBITDAX orearnings before interest, taxes, depreciation, depletion, amortization,exploration expense and other noncash expenses was $199.5 million in 2008'sfirst quarter, a 75% increase from 2007's first quarter EBITDAX of$114.0 million.
First Quarter 2008 Drilling Results
Comstock announced the results to date of its 2008 drilling program. Inthe first three months of 2008 Comstock drilled 36 wells (23.2 net).Thirty-five of the wells drilled were successful and one was a dry hole.
Onshore, Comstock drilled 31 (19.6 net) successful development wells inthe first quarter of 2008. Comstock drilled 26 successful wells (16.3 net) inits East Texas/North Louisiana region which have been tested at an average perwell initial production rate of 2.1 Mmcfe per day. At March 31, 2008 Comstockhad four additional wells in this region that were being drilled which arepart of Comstock's 84 well drilling program planned in this region for 2008.In South Texas, Comstock drilled four successful wells (3.5 net) and had oneexploratory dry hole (0.5 net) during the first quarter of 2008. Thesuccessful wells were tested at an average per well initial production rate of3.9 Mmcfe per day. Three of the wells were in the Javelina field and theother was a successful exploratory well. Comstock also drilled two successfulwells (0.3 net) in the San Juan Basin in New Mexico during the first quarter.
Comstock also announced that it plans to increase its 2008 budget for itsonshore drilling program to $322 million from the $278 million previouslyannounced. The increase is primarily attributable to increased spending inits East Texas/North Louisiana region on acreage acquisitions and drillingrelated to the Company's Haynesville shale program. The Company estimatesthat it has 65,500 (50,400 net) acres that are prospective for Haynesvilleshale development. The onshore drilling program now includes 105 (70.2 net)development wells and 12 (7.7) exploratory wells. Capital spending in theCompany's East Texas/North Louisiana operating region is forecasted to be$200 million, which includes 84 total wells (57.6 net), nine of which will behorizontal wells. Comstock also expects to spend $115 million in its SouthTexas operating region, including 28 wells (19.5 net). The remaining$7 million will be spent on Comstock's other onshore regions.
Comstock's offshore operations are conducted by its 49% owned subsidiary,Bois d'Arc Energy, Inc. (NYSE: BDE). Bois d'Arc has drilled three successfulwells (2.6 net) so far in 2008. The OCS-G 24922 #1 at Ship Shoal block 97 wasdrilled to a depth of 12,983 feet and encountered 71 net feet of pay in twohigh quality sands. This well was put on production in February at a rate of10.3 MMcfe per day. Bois d'Arc has a 78% working interest in this well. TheOCS-G 24926 #1 was drilled to test the 'Perch' prospect at Ship Shoal block120. This well was drilled to a depth of 5,000 feet and encountered 94 feetof pay in eight commercial sands. First production for the well is expectedin the second quarter. Bois d'Arc has a 100% working interest in this well.Bois d'Arc also drilled the OCS-G 24977 #1 at South Pelto block 21 to test the'Chinook' prospect. This exploratory well was drilled to a depth of 18,250feet and encountered 38 feet of pay in the objective sand. First productionfor the well is expected July 1, 2008. Bois d'Arc has a 79% working interestin this well. Bois d'Arc is currently drilling a 16,500 foot exploratory wellto test its 'Kelsie' prospect at Ship Shoal block 95.
