Comstock Resources, an energy exploration and production company, said Monday it has entered into a joint development venture with USG Properties that will target Haynesville shale in Louisiana and Texas.
The agreement relates to acreage recently been acquired by USG. Comstock will operate the wells and will manage the drilling program in exchange for a 12.5% working interest in the acreage. Under the terms of the arrangement Comstock can acquire an additional 12.5% interest in each well drilled by reimbursing USG for acreage costs. USG is contributing an initial 3,315 net acres to the venture.
Comstock estimates that a minimum of 20 wells will be drilled and it plans to add a third operated drilling rig in April. Comstock also intends to work with USG to acquire additional acreage for the joint development venture. Comstock has revised its capital budget for 2017 to $168.5 million and anticipates drilling 24 Haynesville shale wells in 2017.