Natural Gas News – February 5, 2019

Natural Gas News – February 5, 2019

Comstock Resources has Reported 109% in Proved Oil, Gas Reserves in 2018

World Oil reported: Comstock Resources, Inc. has announced that its proved oil and natural gas reserves as of Dec. 31, 2018 were estimated by its independent petroleum engineering firm at 23.6 MMbbl of crude oil and 2,283 Bcf of natural gas or 2,424 Bcfe as compared to total proved reserves of 1,162 Bcfe as of Dec. 31, 2017. The 2,424 Bcfe of proved reserves at Dec. 31, 2018 were 29% proved developed and 86% were operated by Comstock. 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 $1.8 billion, using average first of the month 2018 prices of $2.90 per Mcf for natural gas and $61.21/bbl for oil. The PV-10 Value increased 103% from the PV-10 Value in 2017 of $866 million.

Cold Blast Shrinks Canadian Gas Discount to Smallest in Year

Bloomberg reported: A polar blast is boosting prices for western Canadian natural gas, narrowing the commodity’s discount to the U.S. benchmark to the smallest in almost a year. Temperatures were expected to plunge as low as minus 34 degrees Fahrenheit (minus 37 Celsius) in Alberta’s capital of Edmonton overnight and drop as low as minus 30 degrees Fahrenheit in Calgary, the province’s largest city. The cold has helped boost spot gas at the AECO hub in Alberta, where prices rose to $1.96 per million British thermal units on Thursday. AECO’s discount to Henry Hub natural gas in the U.S. narrowed to 89 cents per million British thermal units, the smallest gap since Feb. 21. Gas at the AECO hub, produced from western Canada’s prolific Montney shale formation, has persistently sold at a discount to U.S. supplies because of the cost of shipping it to markets in the U.S. as well as transportation bottlenecks.