Company to sell non-core Mississippi assets to focus on Haynesville, Bossier, Eagle Ford shale
FRISCO, Texas – Comstock Resources Inc. (NYSE: CRK) has agreed to sell its Mississippi oil and gas properties to a privately held company for $75 million cash. Net production from the properties averaged 1,138 barrels of oil and 0.9 MMcf of natural gas per day during the first six months of 2010.
The sale is expected to close prior to year end and is subject to completion of customary due diligence by the purchaser and closing conditions.
"The successful sale of this non-core asset allows us to further concentrate our resources and personnel on our core assets in the Haynesville and Bossier shale and our emerging position in the Eagle Ford shale," stated M. Jay Allison, CEO of Comstock.
The company's second quarter 2010 financial and operating results release in August noted that the company expects to spend $350 million to drill 69 wells (46.5 net) in the Haynesville and another $150 million combined to acquire exploratory acreage in the Haynesville and Eagle Ford.
As of August 2, Comstock drilled 35 wells (22.2 net) in the East Texas/North Louisiana region. Thirty-four were Haynesville wells. Eleven of the 24 operated Haynesville shale wells drilled in 2010 have been completed and were put on production at an average initial production rate of 12.5 MMcfe per day.
Scotia Waterous (USA) Inc. acted as financial advisor to Comstock with respect to the sale.
Comstock was trading down -0.0100 (-0.0424%) at US$23.56 Tuesday afternoon.
Source: Comstock Resources
