Comstock Resources Inc. (CRK) has acquired or is in the process of closing on 18,000 net acres that they feel are prospective for development in the emerging Eagle Ford Shale play in Karnes, McMullen, and Atascosa counties in South Texas. They are focusing primarily on the oil and condensate windows in this play due to the better economics of oil versus natural gas. They hope to acquire additional 10,000 net acres in our focus area. Given expected well spacing of 80,000 acres and an expected per well recovery of 400,000 barrels of oil per well, Comstock's acreage could have 67 million barrels of oil equivalent of reserve potential. They plan to move one of their Haynesville rigs to the South East Texas region and expect to drill three Eagle Ford Shale wells on the acreage by the end of this year.
In 2011 after they have completed their leasing activities, they plan to have a two to three rig program to develop their Eagle Ford Shale acreage.
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