The company purchased Texas acreage from a family-owned oil and gas company that offsets its July deal to buy Haynesville acreage from bankrupt Enduro Resource Partners LLC.
Comstock Resources Inc. (NYSE: CRK) is making progress on plans to increase its Haynesville Shale acreage—potentially doubling its current acreage—with a deal to purchase interests in Harrison and Panola counties, Texas.
Comstock agreed to pay $20.5 million for an 88% interest in Shelby Shale LLC’s 6,023-net acres. However, the deal is structured so that Comstock will compensate Shelby by granting it 12% interest in each well Comstock drills.
Dallas-based Shelby is a privately-held, fourth-generation family oil and gas company operating since the 1920s. The company operates more than 70 wells in Harrison and Panola, according to its website.
Comstock said the transaction will add 22.4 identified net future operated locations at $900,000 per well or $3,400 per acre, according to a Dec. 20 report by Seaport Global Securities analyst Mike Kelly.