Comstock Resources, Inc

Comstock Resources is based in Frisco, Texas and is engaged in the acquisition, development, production and exploration of oil and natural gas with operations concentrated in Texas, Louisiana and Mississippi. Our common stock is listed and traded on the New York Stock Exchange.At December 31, 2015 we owned interests in 1,575 producing wells. Our oil and gas properties are estimated to have proved reserves of 625 Bcfe which are 91% natural gas and 9% oil. In 2015 we restarted development activity in East Texas and North Louisiana where we have 80,700 (68,300 net) acres which are prospective for natural gas in the Haynesville or Bossier shale formations.   We drilled 10 (9.6 net) horizontal natural gas wells on our Haynesville shale properties in 2015.  In 2015, 48% of our drilling and completion expenditures were related to natural gas projects.  We are deferring work on our oil focused properties until oil prices improve.  Our Eagleville field includes 30,200 acres (22,200 net) located in the oil window of the Eagle Ford shale in South Texas. During the last several years we have also acquired 87,700 acres (81,500 net to us) in Mississippi and Louisiana that are prospective for development in the Tuscaloosa Marine shale.  

Comstock offers potential investors the opportunity to invest in a Company with a strong growth potential and a proven track record of successfully developing new shale resource plays. With the severe drop in oil prices and weaker natural gas prices, we enter 2016 with our primary focus on preserving liquidity and protecting the Company's balance sheet. We have substantially reduced our oil directed drilling program and released all but one operated drilling rig.  In 2016, we are pursuing a prudent natural gas drilling program in the Haynesville shale based on enhanced recovery from longer laterals and increased stimulation.   The Company has a total of 636 operated locations, including 286 extended lateral locations, on its Haynesville/Bossier shale acreage, where the Company estimates to have over 6 Tcf of reserve potential. We are currently budgeting $90 million to drill nine long lateral natural gas wells in 2016.  This program should provide natural gas production growth in 2016 if we drill all of the wells that we have budgeted, but we may reduce the number of wells drilled if natural gas prices remain low.  While we have no near term plans to drill wells on our oil properties, we are maintaining lease positions on  undeveloped oil properties where it is economically feasible. We have one of the lowest overall cost structures in the industry, and we intend to maintain a low cost structure on-going. We are safeguarding the balance sheet in 2016 due to the current oil and gas price uncertainty.  We have no debt maturities prior to 2019 and we continue to conservatively manage cash reserves.