(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 its continuing operations for each of the three years in the period ended December 31, 2014:

	2012						2013						2014
	Oil (MBbls)			Natural Gas (MMcf)			Oil (MBbls)			Natural Gas (MMcf)			Oil (MBbls)			Natural Gas (MMcf)
Proved Reserves:
Beginning of year		13,234			1,080,644			18,899			437,445			21,976			452,653
Revisions of previous estimates		327			(529,272	)		28			23,321			(2,182	)		3,998
Extensions and discoveries		11,953			21,525			5,363			47,581			5,373			78,383
Sales of minerals in place		(4,823	)		(53,690	)		—			—			—			—
Production		(1,792	)		(81,762	)		(2,314	)		(55,694	)		(4,313	)		(39,768	)
End of year		18,899			437,445			21,976			452,653			20,854			495,266
Proved Developed Reserves:
Beginning of year		6,499			546,627			8,389			362,426			13,914			344,278
End of year		8,389			362,426			13,914			344,278			16,247			324,597

During 2012, the Company's estimated quantities of proved undeveloped natural gas reserves decreased by 460 Bcf due to downward revisions related to the lower natural gas price that was used to determine estimated reserve quantities at December 31, 2012. Proved reserve additions for natural gas in 2014 primarily reflect proved undeveloped reserves associated with our upcoming natural gas drilling program. Substantially all of the Company's proved undeveloped natural gas reserves related to undrilled natural gas wells at December 31, 2012 were not economic at the lower natural gas price at December 31, 2012.

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, 2013 and 2014:

	2013			2014
	(In thousands)
Cash Flows Relating to Proved Reserves:
Future Cash Flows	$	3,817,982		$	3,891,953
Future Costs:
Production		(1,307,923	)		(1,260,580	)
Development and Abandonment		(649,758	)		(571,200	)
Future Income Taxes		(451,708	)		(192,600	)
Future Net Cash Flows		1,408,593			1,867,573
10% Discount Factor		(601,376	)		(776,913	)
Standardized Measure of Discounted Future Net Cash Flows	$	807,217		$	1,090,660

The standardized measure of discounted future net cash flows at the end of 2013 and 2014 was determined based on the simple average of the first of month market prices for oil and natural gas for each year. Prices were $104.38 per barrel of oil and $3.37 per Mcf of natural gas for 2013 and $92.55 per barrel of oil and $3.96 per Mcf of natural gas for 2014. 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, 2012, 2013 and 2014:

	2012			2013			2014
	(In thousands)
Standardized Measure, Beginning of Year	$	887,798		$	641,325		$	807,217
Net change in sales price, net of production costs		(217,925	)		43,117			5,911
Development costs incurred during the year which were previously estimated		179,549			187,643			344,590
Revisions of quantity estimates		(886,531	)		48,411			(40,993	)
Accretion of discount		117,381			81,434			105,400
Changes in future development and abandonment costs		628,088			(157,207	)		(10,909	)
Changes in timing and other		27,077			80,348			(19,028	)
Extensions and discoveries		337,223			291,582			163,559
Sales of minerals in place		(236,925	)		—			—
Sales, net of production costs		(307,407	)		(335,677	)		(458,254	)
Net changes in income taxes		112,997			(73,759	)		193,167
Standardized Measure, End of Year	$	641,325		$	807,217		$	1,090,660