Comstock Resources (CRK), Much to Like! Message Board

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Gold/Mining/Energy : Comstock Resources (CRK), Much to Like!

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To: Ed Ajootian who wrote (2)	10/4/1999 11:22:00 PM
From: Ed Ajootian	Read Replies (1) of 20

Ed, Spoke with someone in a position to know what's going on with CRK today and the biggest news is that the logs for the Luhrs #3 well look really good and we may get news on the production test as early as next week. IMO this is very significant since it sets up a ton more of low-risk developmental drilling. The market should start to give some value to their undrilled inventory in this field if this well really comes in a winner. They are still on schedule to get at least 6 out of the seven planned wells for the Double A Wells field drilled this year. They've already spudded the next one (the Carter #12) and I believe the 4th one will be spudded next week. Then a third rig is on its way to drill one of the deeper prospects over there. Then they just spudded a deep offshore well that is targeting one of the biggest prospects in their inventory. They also plan to get 2 more offshore wells going, and then another 2 on land in other locations. Yep, it will not be long before this relatively little O&G company has EIGHT RIGS turning to the right at one time! On the hype front, there is a road show scheduled for the end of the month, after which I would be very surprised if there weren't some new analyst coverage and/or analyst upgrades. Only negative is that a recent exploratory well in the Bois D'Arc venture came up dry. In a few weeks the gas hedge is finished (it cost the company about $6 mm in revenue!) and so far they still haven't hedged any more gas or oil production. New lower interest rate on the bank debt saves $750 K / yr. The South Pelto offshore production platform oughhta come on line by Halloween. This will add another 8 - 9 mmcfe a day to CRK's production. In total contrast the last few months, the next few months are going to be very exciting for this company.

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