Comstock Resources reported that its proved oil and natural gas reserves as of December 31, 2010 were estimated at 1,026 billion cubic feet (Bcf) of natural gas and 4.2 million barrels of crude oil or 1,051 Bcfe, an increase of 45% as compared to total proved reserves as of December 31, 2009 of 726 Bcfe. Yearend proved reserves were 98% natural gas and 50% were classified as proved developed. Comstock operates 92% of the proved reserve base. The present value, using a 10% discount rate, of the future net cash flows before income taxes of the proved reserves (the "PV 10 Value") was approximately $797.6 million, using average first of the month 2010 prices of $4.16 per Mcf for natural gas and $76.31 per barrel for oil. The PV 10 Value is different than the standardized measure of discounted estimated future net cash flows which is calculated after income taxes.

Comstock also announced that its production in 2010 was 73.3 billion cubic feet of natural gas equivalent ("Bcfe") or 200.7 million cubic feet equivalent ("MMcfe") per day. 2010 production increased 12% over 2009's production. 94% of 2010's production was natural gas and 6% was oil. Production in the fourth quarter of 2010 was 17.3 Bcfe or 187.6 MMcfe per day.

Comstock's successful Haynesville shale drilling program in North Louisiana was the primary driver of the growth in production and proved reserves in 2010. The Haynesville shale program accounted for 402 Bcfe out of the 431 Bcfe of total 2010 extensions and discoveries. Comstock also initiated a successful drilling program late in 2010 in the Eagle Ford shale in South Texas which added 1.4 million barrels of oil and 1.5 Bcf of natural gas or 10 Bcfe to proved reserves in 2010. Proved reserve additions for activities outside of Comstock's shale operations in the Haynesville or Eagle Ford were 19 Bcfe. The Company's proved reserve estimates at December 31, 2010 reflect no more than two undeveloped offset locations for each well that the Company has drilled. All of the Company's proved undeveloped reserves are scheduled to be drilled within five years of the first year that the reserves were included as proved reserves.

Tags: Comstock Resources