Comstock Resources, Inc. Reports on Impact of Hurricane Katrina on Its Operations
FRISCO, Texas, Sept. 6 /PRNewswire-FirstCall/ -- Comstock Resources, Inc. (NYSE: CRK) ("Comstock" or the "Company") today announced the impact of Hurricane Katrina on its operations.
Comstock owns a 48% stake in Bois d'Arc Energy, Inc. (NYSE: BDE) which announced that all but one of its production facilities in the Gulf of Mexico sustained only minimal damage. Bois d'Arc's Main Pass block 21 facility suffered substantial damage and will require extensive repairs. The facility had averaged 110 barrels of oil per day, net to the Company's interest. The restoration of this facility, which was insured, could take up to a year.
Bois d'Arc has restored approximately 45 million cubic feet equivalent of natural gas ("MMcfe") per day of its production in the Gulf of Mexico after being shut-in for six days and expects to have production up to 60 MMcfe per day by September 15th. The remaining production of 19 MMcfe per day is awaiting the start up of operations of third party pipelines and processing facilities. The pipeline operators have not informed Bois d'Arc of how long these systems will be down. Bois d'Arc expects that it will not resume full production for several months. The expected start up of an additional 18 MMcfe per day scheduled for the third quarter is expected to be delayed due to third party pipeline problems as well as the availability of construction services due to the repair activity.
Bois d'Arc has resumed drilling operations on three wells in the Gulf of Mexico utilizing the three rigs under long-term contract. None of the drilling rigs sustained significant damage. As a result of Hurricane Katrina and the previous hurricane activity this year, Bois d'Arc has experienced a total of 34 idle rig days.
Comstock also reported that its only onshore property that was impacted by Hurricane Katrina was its Laurel field in Laurel, Mississippi. This oil field which was producing 1,600 barrels of oil per day, net to the Company's interest, was shut in on August 28th and is currently shut in waiting on the return of electrical service to the area which is in the process of being restored. The production facilities in the field did not sustain any significant damage from the storm. Production in the field in the near term may remain limited until the refinery which purchases the oil from the field is returned to service.
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 that 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 and in the Gulf of Mexico through its ownership of Bois d'Arc Energy, Inc. 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