Domestic energy explorer
Comstock Resources Inc.
) announced that its total proven oil and gas reserves for 2012
declined by 45.7% to 711.9 billion cubic feet of natural gas
equivalent (Bcfe) against total proven reserves of 1,311.2 Bcfe
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Comstock's proven oil reserves for 2012 increased by 22.2% to
39.2 million barrels and now comprise 33% of the total reserves.
However, the proven reserves of natural gas declined by 57.4%
year over year in 2012, to 476.6 billion cubic feet (Bcf).
The upside in oil reserves stemmed from Comstock's successful
Eagle Ford shale and Wolfbone drilling programs. Apart from these
two regions, Comstock's major area of operation will be
concentrated on its Wolfcamp shale oil project.
Comstock produced 96.3 Bcfe of oil and gas in 2012, of which
nearly 86% was natural gas. Management expects oil volumes to go
up by 40-60% in 2013 as compared to 2012.
Last year, Comstock spent roughly $489.9 million for its drilling
operations and has estimated $420.0 million for similar
expenditures in 2013.
Frisco, Texas-based Comstock is an independent oil and gas
exploration and production company engaged in the acquisition,
exploration, and development of oil and gas properties. The
company's operations are concentrated primarily in two regions in
the U.S.: East Texas/North Louisiana and South Texas.
Comstock's large acreage position in the prolific
Haynesville/Bossier Shale play provides a multi-year inventory of
low-risk development drilling opportunities. Supplemented with a
low-cost structure, the company remains well positioned to
maintain a strong growth trajectory in the near-to-medium term.
Comstock currently carries a Zacks Rank #3 (Hold), implying that
it is expected to perform in line with the broader U.S. equity
market over the next one to three months.
However, certain other U.S. exploration and production firms like
Breitburn Energy Partners L.P.
Cabot Oil & Gas Corporation
Memorial Production Partners L.P.
) are expected to significantly outperform the equity market in
the next one to three months. All the three stocks are currently
holding Zacks Rank #1 (Strong Buy).