Comstock Resources Inc. (NYSE: CRK) said Oct. 11 it expanded its Haynesville Shale joint venture (JV) with USG Properties Haynesville LLC, a subsidiary of NextEra Energy Inc.
In January 2017, Comstock formed the JV with USG to jointly develop Haynesville acreage in Louisiana and Texas outside of the Frisco, Texas-based company's core. The initial activities of the JV program entered in early 2017 have been focused primarily in Caddo Parish, La., where to date USG had acquired 6,821 net acres targeting the Haynesville.
USG will now also participate in four wells being drilled targeting the Bossier Formation in Sabine Parish, La. Comstock's Bossier Shale well drilled in 2015 exceeded the production goal established for these four wells, according to company's press release.
The participation by USG allowed Comstock to increase its activity level resulting in the royalty relief, additional acreage and working interest. These wells will also allow the company to prove up its substantial inventory of Bossier Shale projects.
USG will pay Comstock for the right to participate for 50% of the company's working interest in each of the four wells. The financial arrangements provide for an additional performance payment to Comstock for each well that meets or exceeds the company's production target.