UPDATE 1-Comstock Resources Q3 production up 9 pct from Q2

Mon Oct 5, 2009 5:11pm EDT

* Q3 average production 184 mmcfed

* Says drilling focused on Haynesville Shale

* Says to offer $200 mln senior notes to repay debt

Oct 5 (Reuters) - Oil and natural gas company Comstock Resources Inc (CRK.N) reported a 9 percent sequential increase in its quarterly production, helped by successful operation of its Haynesville shale wells.

For the third quarter, the company's production averaged about 184 million cubic feet of natural gas equivalent per day (mmcfed), 9 percent higher than its second-quarter average production of 169 mmcfed.

Comstock said it had drilled 38 wells in the first nine months of 2009, adding that all of the wells were successful.

Comstock's seven successful Haynesville shale horizontal wells in DeSoto Parish, North Louisiana tested at an average initial production rate of 15.6 mmcfed per well, 23 percent higher than the second-quarter results, the company said in a statement.

It also said it is currently drilling six additional wells in the Haynesville shale.

Separately, the Frisco, Texas-based company said it plans to offer $200 million of senior notes due 2017, and will use the proceeds to pay back debt of $165 million under its bank credit facility.

Shares of the Comstock closed up 3 percent at $39.58 Monday on the New York Stock Exchange.

For the alerts, please double click [ID:nWNAB6212] [ID:nWNAB6214] (Reporting by Arup Roychoudhury in Bangalore; Editing by Pradeep Kurup) (arup.roychoudhury@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: arup.roychoudhury.reuters.com@reuters.net))

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