Comstock Resources, Inc. Announces Divestiture of South Texas Natural Gas Properties
October 17 2016 - 6:45AM
COMSTOCK RESOURCES, INC. ANNOUNCES DIVESTITURE OF SOUTH TEXAS
NATURAL GAS PROPERTIES
FRISCO, TEXAS,
October 17, 2016 -- Comstock Resources, Inc. ("Comstock" or the
"Company") (NYSE: CRK) announced that it has entered into a
definitive purchase and sale agreement with a third party to sell
Comstock's conventional natural gas properties in South Texas for a
sale price of $28.0 million. The sale, which is subject to
customary closing conditions and adjustments, is expected to close
in December 2016 and will have an effective date of August 1, 2016.
Comstock intends to use the proceeds from the sale toward funding
its 2016 drilling program.
The properties being sold are
producing approximately 9.6 million cubic feet per day of natural
gas and 22 barrels of oil per day. At September 30, 2016,
Comstock's proved reserves included approximately 57,000 barrels of
oil and 48.9 billion cubic feet of natural gas related to the
interests being sold. The Company expects to realize a
pre-tax loss on the divestiture of approximately $10.0 million.
The Company also announced that it
has recently restarted its Haynesville drilling program and on
September 28th spudded the
Company's fourth well this year and plans to add a second operated
drilling rig by early November.
Additionally, Comstock has begun
to implement its hedging program for 2017 with the recent
improvement in natural gas prices. Currently, the Company has
hedged 30 million cubic feet per day of its 2017 natural gas
production at $3.25 per Mmbtu.
"This sale strengthens our balance
sheet by providing additional liquidity and helps fund our
Haynesville shale drilling program," stated M. Jay Allison, Chief
Executive Officer of Comstock.
BMO Capital Markets served as
exclusive financial advisor and Locke Lord LLP served as legal
advisor to Comstock on the transaction.
This press release may contain "forward-looking statements" as that term is
defined in the Private Securities Litigation Reform Act of
1995. Such statements are based on management's current expectations and are subject to a number
of factors and uncertainties which could cause actual results to differ materially from those described herein. Although the Company believes the expectations in such statements to be reasonable, there can be
no assurance that such expectations will prove to be
correct.
Comstock Resources, Inc. is an independent energy company based in
Frisco, Texas and is engaged in oil and gas acquisitions,
exploration and development primarily in Texas and Louisiana. The
Company's stock is traded on the New York Stock Exchange under the
symbol CRK.
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Comstock Resources, Inc via Globenewswire
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