Comstock Resources Inc., Frisco, Texas, (NYSE: CRK) has entered into a definitive agreement to acquire acreage in the Delaware Basin in West Texas from Eagle Oil & Gas Co. and certain other parties for $332.7 million.
Included are approximately 68,000 gross (44,000 net) acres in the Southern Delaware Basin in Reeves County in West Texas that are prospective for development in the Bone Spring and Wolfcamp shales. The acquisition consists primarily of leasehold but also includes an estimated 23.2 million BOE of proved reserves at closing and net daily production of approximately 1,400 BOE per day. The properties being acquired include 29 producing wells and five wells in various stages of completion.
The deal, which was to close by yearend 2011, will be funded with borrowings under the company’s bank credit facility. Establishing a position in the Permian Basin has been a priority for the company in 2011. Prior to completing this acquisition, Comstock had leased approximately 12,000 net exploratory acres in the Permian region in 2011.
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