We definitely have the ability to defer turning wells to sales. All of those are still in the toolkit as we look to navigate these next, upcoming six months of expected weakness. At the same time, wanting to preserve the company’s ability to benefit from the stronger prices, which we’ve already started to lock into starting in the fourth quarter.
A – Ronald Burns: I think the key is we do have that ability. Like we said earlier in the conference call, our frac commitments, we don’t have any frac commitments that are very long-term. We can toggle those. Our frac provider has been for Comstock, very a big backer. So if we need to delay some of those fracs to the latter part of the year, then we’ll have the choice to do that.
Operator: Thank you. One moment for our next question. Our next question comes from Noel Parks with Tuohy Brothers. Please go ahead.
Noel Parks: Hi, good morning. A lot of interesting questions and that got me thinking. And I was wondering, you are being at the two-year mark. I guess a little beyond for your first Western Haynesville well. I’m just wondering whether there are any surprises in the type curve as you’ve gotten more data and with the tweaks you’ve made to completions – drilling completions since then. Do you foresee that first wells type curve as being kind of representative of what you’re going to see in the more recent wells? I just want to get a sense of whether you’re at the point you kind of think you have a working benchmark for going forward.
A – Jay Allison: When we started drilling the first well over two years ago, two-and-a-half years ago, we have felt comfortable, Noel, that resource was there, because there was a major field, all these acreage that we now have had secured. It was a major field, gas field. That’s why the Pinnacle plant was here and the 145-mile high-pressure line was there. The question was kind of like it was in ’07, ’08, can you use this technology there to really drill like shale play both for Bossier and the Haynesville and we’ve proved that it was in ’08, ’09 in the core. Now I think we’ve seen kind of a mirror image of that. We have started to see that materialize in the Western Haynesville, but you don’t know, right? I mean, the jury is still out.
As you have the Circle M well producing eight months and our outside reservoir group gives us some reserves. The next year, they continue to be a little better and the next year a little better. It does give you a lot of confidence that the resource is there, one. And then when you listen to Dan, it gives you confidence that the questions are, how have you changed your drilling, have you changed your completion? We’re getting better and better and better. Again, remember, no group has really completed more Haynesville Bossier wells, period, than we have. So, our confidence is really strong right now because we have seen this happen back in the core in ’08, ’09, ’10, ’11. If you were to look at those first wells that you’d have an upset stomach there, they weren’t very good wells in ’08, ’09.
very good wells in ’08, ’09. If you compare the results there versus our first wells here, I mean, these look exemplary compared to what those wells look like in ’08. So, that’s why we went out to secure our footprint. We went out and we didn’t try to push on reserves. We just said this is what we think EURs are. And so far, they’ve held up really solid, and in fact, we’ve seen improvements on them. That’s what we’re saying. Costs down, EUR steady, maybe going up. That gives us this hope as we say this is our business plan to continue well-by-well to add inventory and to derisk our big footprint, which now we do control.
Dan Harrison: Noel, I would add, our first wells were Bossier Shale wells because we were targeting a little shallower, little less complex to drill. But we’ve got the confidence to drill the Haynesville and we think that our latest wells being Haynesville wells. We think they’re coming out of the gate stronger. Yes, they don’t have the two years of proof that the first Bossier well has, but that’s what really excites us that the fact that, the Haynesville, just like Haynesville is better in Louisiana too. It always seems to be a little bit better. It’s a better rock. It definitely completes better than the Bossier. So, we’re excited about the potential of the next batch of Haynesville well has and we’re really focused. You can see most of the wells we focus now on the Haynesville formation and the play versus the Bossier. I think we have what six Bossier wells and I think we’re almost half and half of the 12.
Unidentified Company Representative: Yeah. That’d be right. We’re to date turn to sales we’re basically about half and half on Bossier and Haynesville. We will have, I’ll say, we’ve leaned in heavier on the Haynesville wells this year. I think we’re going to have total nine wells turn to sales this year. Seven of those will be Haynesville, just two will be Bossier’s. But part of that early on was, we obviously concerned with the high temperatures and increase in our chance of success and have a better drilling performance. We targeted the Bossier early on, but we’ve made such great progress with dealing with the temperatures that we now basically don’t see the Haynesville, as so much of a challenge compared to the Bossier.
Noel Parks: Great. Thanks for the detail. I was just wondering, is it the formation being [indiscernible] does that affect the spacing at all? Is there a lot of question about what ultimately sort of density you would be pursuing in the Western Haynesville?
A – Jay Allison: Sure. I mean, obviously, these wells are expensive and you’re going to have to be really careful not to get them too close together and have a lot of interference between wells. I mean, you are not going to have as big of a margin for that, in a play where you are deeper and you have got more extensive wells. But we’ve got, I mean, some of the stuff is really thick. Somebody asked earlier, it’s a really good question about how we’re going to thinking about the future development of this play because we’re blessed with that task to solve how many can we stack on top of each other and what’s the spacing going to be. Part of that is we wanted to get this last well pump a bigger frac and see what kind of recovery we get because that obviously will also affect the exact spacing is going to be for the future. We’ll just have to see what these type curves show us what they look like and where we end up with that.
A – Dan Harrison: Noah, with our big acreage position, I mean, it could be a decade or more before we do any aggressive infill drilling.
