FRISCO, Texas, Feb. 5 /PRNewswire-FirstCall/ -- Comstock Resources, Inc.
("Comstock" or the "Company")(NYSE: CRK) announced today that Comstock's
proved oil and natural gas reserves as of December 31, 2008 are estimated at
524 billion cubic feet ("Bcf") of natural gas and 9.7 million barrels of crude
oil or 582 Bcf equivalent of natural gas ("Bcfe"), as compared to total proved
reserves as of December 31, 2007 of 651 Bcfe, excluding the 398 Bcfe in proved
reserves attributable to Bois d'Arc Energy which was sold in August 2008 to
Stone Energy Corporation. Natural gas reserves account for 90% of total
proved reserves and 67% of the total proved reserves were classified as proved
developed at the end of 2008. Comstock operates 85% of the proved reserve
base. The present value, using a 10% discount rate, of the future net cash
flows before income taxes of the estimated proved oil and natural gas reserves
(the "PV 10 Value") at the end of 2008 is approximately $820 million using
year end December 31, 2008 oil and natural gas prices of $34.49 per barrel for
oil and $5.33 per Mcf for natural gas. The PV 10 Value is different than the
standardized measure of discounted estimated future net cash flows which is
calculated after income taxes.
Comstock produced 59.9 Bcfe in 2008 and divested of 58.8 Bcfe in 2008 of
proved reserves relating to certain non-core properties. The proved reserves
at December 31, 2008 were negatively impacted by downward revisions of 52.8
Bcfe. These revisions were primarily the result of the lower crude oil and
natural gas prices used at December 31, 2008 to determine whether the
production or development of future reserves would be economic. Using
twelve-month average prices as of the first day of each month for crude oil
and natural gas prices realized by the Company in 2008 of $78.09 per barrel
and $8.32 per Mcf, the Company's proved reserves would increase to 617 Bcfe
with a PV 10 Value of $1.8 billion. For the three months ending December 31,
2008, Comstock's average realized crude oil price was $52.16 per barrel and
average realized natural gas price (including hedging gains) was $6.44 per
Mcf, reflecting weaker differentials from NYMEX market prices than the Company
experienced in the first three quarters of 2008.
Comstock spent approximately $426.1 million in 2008 on exploration and
development activities which added 102.4 Bcfe to its proved reserve base.
Capital expenditures of $116.0 million in 2008 relate to the acquisition of
unevaluated leases primarily in the emerging Haynesville Shale play in East
Texas and North Louisiana.
The decrease in the proved reserve base in 2008 from the decline in crude
oil and natural gas prices has increased the Company's depletion, depreciation
and amortization ("DD&A") unit of production rate. The Company's average per
unit DD&A rate for the three months ended December 31, 2008 is estimated to be
$3.34 per Mcf equivalent ("Mcfe") as compared to the third quarter average
rate of $3.07 per Mcfe.
The Company also announced that the recent declines in crude oil and
natural gas prices and the significant decline in the value of equity
securities that began during the latter part of 2008 and have continued into
early 2009, will result in the recognition of impairment charges during the
fourth quarter of 2008 for Comstock's investment in Stone Energy Corporation.
The Company currently expects to recognize an other than temporary impairment
of its investment in Stone Energy of approximately $162.6 million ($105.8
million after income taxes). The Company will also have an impairment of $0.9
million ($0.6 after income taxes) attributable to certain producing oil and
gas properties. These non-cash charges will be reported in income from
continuing operations in the Company's financial and operating results.
Comstock Fourth Quarter and Full Year 2008 Earnings Conference Call
Comstock has scheduled a conference call for Tuesday, February 10, 2009 at
9:30 a.m. CST (10:30 a.m. EST) to discuss fourth quarter and full year 2008
financial and operating results. To access, dial (800) 599-9795 before the
call begins. Please reference Passcode 13456712. International callers may
also participate by dialing (617) 786-2905. A replay of the call will be
available approximately two hours after the live broadcast ends and will be
accessible until Tuesday, February 17, 2009. To access the replay, please
dial (888) 286-8010 and reference Passcode 42281507. International callers
may listen to a playback by dialing (617) 801-6888. In addition, the call
will be webcast live on Comstock's website at
http://www.comstockresources.com. A replay of the call will also be available
at that site.
This press release may contain "forward-looking statements" as that term
is defined in the Private Securities Litigation Reform Act of 1995. Such
statements are based on management's current expectations and are subject to a
number of factors and uncertainties which could cause actual results to differ
materially from those described herein. Although the Company believes the
expectations in such statements to be reasonable, there can be no assurance
that such expectations will prove to be correct.
Comstock Resources, Inc. is a growing independent energy company based in
Frisco, Texas and is engaged in oil and gas acquisitions, exploration and
development primarily in Louisiana and Texas. The Company's stock is traded
on the New York Stock Exchange under the symbol CRK.
SOURCE Comstock Resources, Inc.
CONTACT:
Roland O. Burns, Sr.
Vice President and Chief Financial Officer
of Comstock Resources, Inc.,
+1-972-668-8800
Web Site: http://www.comstockresources.com
(CRK)
