Comstock Resources says that its production in 2009 increased to 65.5 billion cubic feet of natural gas equivalent (Bcfe) or 179.4 million cubic feet equivalent (MMcfe) per day. 2009 production increased 9% over 2008's production and was 13% higher than 2008's pro forma production excluding production from properties divested of in 2008. 93% of 2009's production was natural gas and 7% was oil. Fourth quarter 2009 production of 19.1 Bcfe or 207.5 MMcfe per day increased 27% over production in the fourth quarter of 2008 and was 13% higher than production in the third quarter of 2009.

Comstock also announced that its proved oil and natural gas reserves as of December 31, 2009 were estimated at 682 billion cubic feet ("Bcf") of natural gas and 7.2 million barrels of crude oil or 726 Bcfe, an increase of 25% as compared to total proved reserves as of December 31, 2008 of 582 Bcfe. Yearend proved reserves were 94% natural gas and 55% were classified as proved developed. Comstock operates 90% of the proved reserve base. The present value, using a 10% discount rate, of the future net cash flows before income taxes of the proved reserves (the "PV 10 Value") was approximately $489.1 million, using average first of the month 2009 prices of $3.54 per Mcf for natural gas and $49.60 per barrel for oil. The PV 10 Value is different than the standardized measure of discounted estimated future net cash flows which is calculated after income taxes.

The proved reserves as of December 31, 2009 are calculated based on new Securities and Exchange Commission ("SEC") guidelines that went into effect for the Company's yearend 2009 oil and gas reserve reporting. The revisions to the guidelines were intended to modernize and update the rules to align them with current practices and changes in technology. Changes in the Company's proved reserve estimates compared with the methodology used at the end of 2008 based on the prior SEC rules include: • Oil and natural gas prices used to determine proved reserves were based on the simple 12-month average of the first day of the month oil and natural gas prices received by the Company rather than the year-end market prices prescribed by the old method. Under the old method, commodity prices used to calculate proved reserves would have been $5.29 per Mcf for natural gas and $64.43 per barrel for oil as compared to the significantly lower prices of $3.54 per Mcf $49.60 per barrel prices determined under the new method. • The new guidelines have expanded the definition of proved undeveloped reserves that can be included based on an existing producing well. The 2009 proved reserves include one additional offsetting undeveloped location for certain of the Company's Haynesville shale producing wells which had the impact of increasing the total proved undeveloped reserves by 31 Bcfe. • The new guidelines also limit the inclusion of proved undeveloped reserves to those reserves that are scheduled to be developed within five years, which had an impact of reducing the Company's proved reserves by 49 Bcfe.

Tags: Comstock Resources