Comstock Resources Asset Sale

[uberCOAT]

Comstock Announces closing of Bakken Divesture:
https://investors.comstockresources.com ... ivestiture

A portion of the sales proceeds will be used to fund a $36.4 million acquisition of predominantly undeveloped Haynesville shale acreage in East Texas. The acquisition includes 22,175 net acres in Harrison, Leon, Panola, Robertson and Rusk Counties and includes interests in 38 (18.8 net) producing wells with current gas production of 1.7 MMcf/day. Approximately 95% of the acreage to be acquired is held by production. An affiliate of the Company's majority stockholder is acquiring the remaining 50% of the acreage and wells alongside Comstock. Comstock will operate the drilling program and has identified 104.4 net drilling locations on the jointly acquired acreage. The acquisition is expected to close before year-end.

"This value adding bolt-on acquisition will add 52.2 high quality net drilling locations to Comstock's prospect inventory and will allow us to extend the lateral length on 19 of our existing drilling locations by more than 3,000 feet", stated M. Jay Allison, Chairman and Chief Executive Officer of Comstock.

What do you think of this add on Dan?

[Fraser921]

Another one time non cash loss.

Comstock expects to recognize a pre-tax loss of $150-$160 million on the divestiture.

How the hell do you lose 150 m when oil is 80?

[dan_s]

If ngas stays over $4, those Haynesville are extremely valuable. We discussed it on my last webinar. Watch the replay from the EPG home page.

NOG is the Buyer of the Bakken assets