Comstock Closes $170 Million Oil & Gas Property Acquisition
Comstock Resources, Inc. has closed the previously announced acquisition of certain oil and gas properties and related assets from SWEPI LP, an affiliate of Shell Oil Company for $170.0 million. Comstock acquired producing properties in South Texas which include 67 (43.0 net) producing wells which are currently producing 22 million cubic feet of natural gas equivalent per day.
Comstock estimates that the acquired properties have net proved reserves of approximately 57 billion cubic feet ("Bcf") of natural gas. All of the proved reserves are in the developed category. In addition to the proved reserves, Comstock estimates that the properties could yield an additional 90 Bcf of resources potential from future exploitation.
The acquisition had an effective date of October 1, 2007. The acquisition was funded by borrowings under Comstock's bank credit facility, with Bank of Montreal as administrative agent for a syndicate of banks.