Operator: Thank you. One moment for our next question. Our next question comes from Paul Diamond with Citi. Please go ahead.
Paul Diamond: Thank you and good morning. Thanks for taking my call. I just want to touch quickly, staying in the Western Haynesville. Once you move beyond held by production needs, where do you see their pad size going? I guess how much does that impact economics over the longer term?
A – Jay Allison: I didn’t catch the full question there.
Paul Diamond: Sorry. When you get beyond the held-by production needs, how big do you see the pad size getting at Western Haynesville?
A – Jay Allison: Pad size? I mean, everything that we have drilled to date in the core and in the Western Haynesville for multi-well pads. I mean, I think the biggest pad we built is like 500 by 700 foot for multi-well pads. Occasionally, we’ll come back and add on to those if we come back and drill additional wells off the pad.
A – Dan Harrison: He’s probably interested in how many wells per pad could we look at. Obviously, we have both the Bossier and the Haynesville play. Given our vast acreage, we’re able to go both directions from the pad versus just one. We’re, at least seems like, we’re really targeting 10,000-foot laterals here as kind of an optimal area. I think 10,000-foot laterals, multiple benches, and maybe each of the Haynesville and Bossier potentially, and then going from both directions from a pad. So, quite a few wells could be on a pad in the future, which obviously creates a lot of efficiencies for everything including the midstream hookup.
A – Jay Allison: Yeah. I’m sorry. I didn’t get that. Yeah, everything that we’ve got targeted today is for two well pads where we can do it. We do drill in opposite directions to hold the maximum amount of acreage, but we do have them built. We’ll come back and drill on these pads in the future with additional wells.
A – Ron Mills: Kind of all along the same line is, takeaway. We’re going to have enough takeaway in the Western Haynesville and that’s where we came in last year with Pinnacle, which is backed by Quantum. As we drill these wells, we’re planning on takeaway literally years ahead. Not that we have to drill those wells at all because most of that’s HPP, but we can plan our own path for takeaway. That’s very rare. The big acreage positions like this that don’t have an aggressive drill schedule is very rare too. If you capture this amount of acreage, let’s say, $500 or $600 or less. That’s typically when you make your money. We have captured that. The question is, do you aggressively have to drill it? The answer is, no. Then you say, well, is the pipe thickness there? The answer is, we think, yes. And has the well performance been positive? And the answer is, yes.
Paul Diamond: Understood. Thanks for the clarity. Just one quick follow-up, shifting back to the core. For the rest of the 2024 operational plan, I guess, what percentage is likely to include additional wells somewhere before spacing. But really to answer your question, we do not know what that exact spacing is going for additional wells similar to four Bossier ones you drilled in Q1 that are kind of required to hold the acreage.
A – Jay Allison: Can you ask that again?
Paul Diamond: Sure. Of the 2024 operational plan, in the first quarter, there were four of those Bossier wells, shorter laterals required to hold the acreage. How much of that should we expect to…
A – Dan Harrison: There’s no more.
A – Jay Allison: I’ll tell you, interestingly enough, we do have some additional sections that will come up. We’ve actually going to drill one of these horseshoe wells later this year. I’ll go ahead and tell that, that’s kind of something that we’re looking forward to trying. But we don’t have many of these isolated sections left, where we’ll have any of those issues.
Unidentified Company Representative: Yes. I think the key to that is, if you don’t think they’re valuable, you don’t drill them. We think they’re valuable enough to drill them. Even if they’re shorter, they’re very economic.
A – Ron Mills: We’re excited about the horseshoe design and it could eliminate the stranded shorties as we like to call them. The 5,000-foot lateral wells has the potential to allow you to eliminate those and turn it into a horseshoe well and have a long lateral well on one section. That will be kind of an exciting thing to do here later in the year.
Paul Diamond: Understood. Thanks for the clarity.
A – Ron Mills: Because we do believe that shorter laterals in the Western Haynesville are definitely our lowest return projects just because of so much cost into the well and the reserves you recover with only that shorter lateral. So the ability to eliminate a lot of those out of our inventory and turn them into long, it will be very enhancing.
Operator: Thank you. I’m showing no further questions at this time. I now like to turn it back to Jay Allison for closing remarks.
Jay Allison: Perfect. Again, I know everybody’s time is valuable and we thank you for sharing your time with us. At Comstock, we do recognize the growing need for natural gas around the world. I mean, our long-term goal, as we said over and over and over is to be a significant supplier to the growing LNG market that’s developing really several 100 miles from our Haynesville Shale operations, including our Western Haynesville area. So, we’re going to be good stewards with your money. We want to thank the bondholders. We want to thank our banks that support us. We want to thank the Jones that support us and the other stakeholders and the service companies. Everybody over the last 100 days has kind of teamed up and has helped Comstock. So, we’re thankful for that. Thank you for your time.
Operator: Thank you for your participation in today’s conference. This concludes the program. You may now disconnect.
