(12) Oil and Gas Reserves Information (Unaudited)

Set forth below is a summary of the changes in Comstock's net quantities of oil and natural gas reserves for each of the three years in the period ended December 31, 2016:

	2014						2015						2016
	Oil (MBbls)			Natural Gas (MMcf)			Oil (MBbls)			Natural Gas (MMcf)			Oil (MBbls)			Natural Gas (MMcf)
Proved Reserves:
Beginning of year		21,976			452,653			20,854			495,266			9,229			569,596
Revisions of previous estimates		(2,182	)		3,998			(5,096	)		(41,437	)		(406	)		130,416
Extensions and discoveries		5,373			78,383			231			168,539			64			285,076
Sales of minerals in place		—			—			(3,671	)		(5,096	)		(222	)		(58,942	)
Production		(4,313	)		(39,768	)		(3,089	)		(47,676	)		(1,388	)		(53,678	)
End of year		20,854			495,266			9,229			569,596			7,277			872,468
Proved Developed Reserves:
Beginning of year		13,914			344,278			16,247			324,598			9,229			311,130
End of year		16,247			324,598			9,229			311,130			7,277			321,527

The upward revisions of previous estimates in 2016 were primarily performance-related and were attributable to the Company's well performance in the Haynesville shale as well as the expansion of the Company's future drilling plans. The downward revisions in 2015 were primarily price-related and were attributable to the decline in oil and natural gas prices from 2014.

The proved oil and gas reserves utilized in the preparation of the financial statements were estimated by Lee Keeling and Associates, independent petroleum consultants, in accordance with guidelines established by the Securities and Exchange Commission and the Financial Accounting Standards Board, which require that reserve reports be prepared under existing economic and operating conditions with no provision for price and cost escalation except by contractual agreement. All of the Company's reserves are located onshore in the continental United States of America.

The following table sets forth the standardized measure of discounted future net cash flows relating to proved reserves at December 31, 2015 and 2016:

	2015			2016
	(In thousands)
Cash Flows Relating to Proved Reserves:
Future Cash Flows	$	1,763,146		$	2,267,877
Future Costs:
Production		(705,146	)		(798,454	)
Development and Abandonment		(362,874	)		(502,848	)
Future Income Taxes		(1,231	)		(6,488	)
Future Net Cash Flows		693,895			960,087
10% Discount Factor		(321,756	)		(530,812	)
Standardized Measure of Discounted Future Net Cash Flows	$	372,139		$	429,275

The standardized measure of discounted future net cash flows at the end of 2015 and 2016 was determined based on the simple average of the first of month market prices for oil and natural gas for each year. Prices were $46.88 per barrel of oil and $2.34 per Mcf of natural gas for 2015 and $37.62 per barrel of oil and $2.29 per Mcf of natural gas for 2016. Prices used in determining quantities of oil and natural gas reserves and future cash inflows from oil and natural gas reserves represent prices received at the Company's sales point. These prices have been adjusted from posted or index prices for both location and quality differences. Future development and production costs are computed by estimating the expenditures to be incurred in developing and producing proved oil and gas reserves at the end of the year, based on year end costs and assuming continuation of existing economic conditions. Future income tax expenses are computed by applying the appropriate statutory tax rates to the future pre-tax net cash flows relating to proved reserves, net of the tax basis of the properties involved. The future income tax expenses give effect to permanent differences and tax credits, but do not reflect the impact of future operations.

The following table sets forth the changes in the standardized measure of discounted future net cash flows relating to proved reserves for the years ended December 31, 2014, 2015 and 2016:

	2014			2015			2016
	(In thousands)
Standardized Measure, Beginning of Year	$	807,217		$	1,090,660		$	372,139
Net change in sales price, net of production costs		5,911			(751,774	)		(45,379	)
Development costs incurred during the year which were previously estimated		344,590			157,390			45,648
Revisions of quantity estimates		(40,993	)		(111,454	)		113,583
Accretion of discount		105,400			114,427			37,251
Changes in future development and abandonment costs		(10,909	)		14,901			5,315
Changes in timing and other		(19,028	)		(44,439	)		(38,071	)
Extensions and discoveries		163,559			56,216			70,149
Sales of minerals in place		—			(43,694	)		(22,449	)
Sales, net of production costs		(458,254	)		(163,336	)		(107,253	)
Net changes in income taxes		193,167			53,242			(1,658	)
Standardized Measure, End of Year	$	1,090,660		$	372,139		$	429,275