Chairman, President and CEO Jay Allison and a few other executives from Comstock Resources rang the opening bell at the New York Stock Exchange this morning. The oil and gas exploration company is up 25% over the past three months and 7% just this week. Allison talked about his company and gave “Squawk on the Street” his predictions for oil and natural gas prices in 2007.
Comstock Resources has a majority stake in offshore driller Bois d’Arc Energy. On land, Comstock itself has 508 billion cubic feet of reserves. Both businesses are doing well, Allison says.
The company also owns about 400,000 acres in Cotton Valley in Louisiana. As CNBC’s Melissa Lee noted, investment bankers are excited about the potential this region has for development. The CEO says-- that once more horizontal wells are drilled in the area--it will equal “great value enhancement” for shareholders.
As for 2007, Allison portends oil at $60 and natural gas at $8.