Comstock completes Haynesville wells, prices $300M of senior notes


Published: Oct 7, 2009
Comstock Resources Inc. has provided an update on Haynesville shale wells and priced a public offering of senior notes.

The company has commenced an underwritten public offering of $300 million of Senior Notes due 2017, which will bear interest at a rate of 8 3/8% per year. The notes are being sold at 98.571% of par, respresenting an effective yield to maturity of roughly 8 5/8%.

Comstock expects to close the sale of the notes on October 9, 2009, subject to the satisfaction of customary closing conditions.

Net proceeds of the offering are expected to repay outstanding borrowings under the company's bank credit facility and for other general corporate purposes. Total debt outstanding at September 30, 2009 was $340 million. Of this amount, $165 million was outstanding under its bank credit facility.

Banc of America Securities LLC is acting as the lead joint bookrunning manager for the offering.

The company has reportedly completed seven successful operated Haynesville shale horizontal wells in DeSoto Parish in North Louisiana during the third quarter. The wells were tested at an average initial production rate of 15.6 MMcfepd per well, 27% higher than the seven wells reported with the second quarter results.

In the Logansport field, Comstock holds 100% interest in the Caraway #3H well and the Collins 15 #2H well. In the Mansfield field, Comstock holds an 81% working interest in the RLS #1H well. The company holds an 88% working interest in the In Toledo Bend North field and a 63% working interest in the Miller Land HZ #1 well in Logansport.

CRK’s production in the third quarter averaged 184 MMcfe per day, up 9% sequentially.


Buck