Comstock Resources Inc. (NYSE: CRK) approved an open market share repurchase plan following the divestiture of the company's West Texas oil and gas properties.

Comstock completed the divestiture of it West Texas oil and gas properties, which generated US $808 million in net proceeds after selling costs. Proceeds will be used primarily to reduce debt and enhance financial flexibility. With the substantial improvement in the company's balance sheet resulting from the divestiture and recognizing the high return earned on the investment in the West Texas properties, the board of directors initiated a quarterly dividend program and approved a share repurchase plan.

The board of directors approved an open market share repurchase plan which permits the company to repurchase up to US $100 million of its common stock in the open market. The timing and actual number of shares repurchased will depend on a variety of factors including the stock price, corporate and regulatory requirements and other market and economic conditions. The share repurchase plan does not obligate Comstock to acquire any specific number of shares.

The board also declared a dividend of US $0.125 per share to be paid on June 15 to all stockholders of record as of May 31. The June 15 dividend is the first dividend made by the company on its common stock and is intended to be part of an ongoing quarterly program.

Comstock Resources Inc. is an independent energy company engaged in the acquisition, development, exploration, and production of oil and natural gas properties in the US. The company is headquartered in Frisco, Texas.