Comstock Resources Closes $62.0 Million Acquisition

Comstock Resources has closed the previously announced acquisition of producing oil and gas properties in the East Texas, Arkoma, Anadarko and San Juan basins from Ovation Energy, L. P. for $62.0 million. The purchase price was reduced by $0.5 million due to the exercise of certain existing preferential purchase rights. Comstock estimates that the properties being acquired have proved reserves of approximately 42.3 billion cubic feet of gas equivalent. The properties were acquired at a cost of $1.47 per thousand cubic feet of natural gas equivalent ("Mcfe") or $1.88 per Mcfe including future development costs related to the proved reserves. The proved reserves are 99% natural gas and approximately 66% are in the proved developed category. The properties acquired include 165 active wells of which 69 will be operated by Comstock. The operated properties represent approximately 69% of the value of total proved reserves acquired.

Comstock also reported on the impact of Hurricane Ivan on Bois d'Arc's operations in the Gulf of Mexico. Comstock owns 59.9% of Bois d'Arc. Bois d'Arc shut in substantially all of its oil and natural gas production for part of September which resulted in lost production of approximately 40,000 barrels of oil and 300,000 Mcf of natural gas or 540,000 Mcfe. Bois d'Arc also had three drilling rigs under contract standing idle for a combined total of 22 days. Actual damage caused by the storm to Bois d'Arc's production facilities was minimal and repairs are estimated to cost approximately $1.2 million. Bois d'Arc also expects that certain of its properties, which are capable of producing approximately 10,000 Mcfe per day, could also be shut-in much of October due to damage to certain pipelines that service these properties.

Our Privacy Pledge

Most Popular Articles

Brent Crude Oil : $49.98/BBL 1.59%
Light Crude Oil : $49.18/BBL 1.56%
Natural Gas : $2.73/MMBtu 1.44%
Updated in last 24 hours