Comstock Wraps Up Texas Delaware Basin Deal

Bought 68,000 gross Delaware Basin acres in Reeves Co. with 33 producing wells, W TX, gaining 1,445 BOE/d, 21.5 MMBOE.

Comstock Resources Inc., Frisco, Texas, (NYSE: CRK) has closed its purchase of acreage in the Delaware Basin in West Texas from Dallas-based, privately held Eagle Oil & Gas Co. and certain other parties for $331.9 million.

The deal includes approximately 68,000 gross (44,000 net) acres in the Southern Delaware Basin in Reeves County, which are prospective for development in the Bone Spring and Wolfcamp shales. The acquisition consists primarily of leasehold and substantially all the acquired acreage has been derisked by drilling activity on or near the acquired acreage. The properties include 33 producing wells and six wells in various stages of completion.

Production is approximately 1,445 barrels of oil equivalent per day. Proved reserves are an estimated 21.5 million barrels of oil equivalent.

Comstock will fund the deal with borrowings under the company's bank credit facility.

Prior to this acquisition, Comstock has leased approximately 12,000 net exploratory acres in the Permian region. The deal adds more than 900 net identified vertical drilling locations in the Wolfbone play.

Comstock president and chief executive M. Jay Allison says, “The acquisition, when combined with our successful Eagle Ford shale drilling program in South Texas, will continue to grow our oil and liquids production. In 2012, we plan to spend 72% of our capital budget on oil projects and are targeting exiting 2012 with more than 20% of our production coming from crude oil.”