Comstock Resources, Inc. has entered into an asset purchase agreement with Northern Oil & Gas, Inc. (NOG) to sell its assets in the Bakken shale for US$154 million in cash, subject to adjustment and customary closing conditions.
The properties being sold include non-operated interests in over 400 producing wells (65.9 net) with recent production of greater than 4500 net boe/d (approximately 65% oil). The sale is expected to close in 4Q21 and will have an effective date of 1 October 2021. Comstock expects to recognize a pre-tax loss of US$130-US$140 million on the divestiture. EnergyNet is acting as exclusive advisor to Comstock on the sale.
Comstock plans to re-invest the proceeds from the property sale into its Haynesville shale development program, including the acceleration of completing 13 (9.4 net) drilled and uncompleted wells which were originally budgeted to be completed in 2022. Comstock may also use a portion of the proceeds to acquire additional leasehold and to fund additional drilling activity in 2022.
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Read the article online at: https://www.oilfieldtechnology.com/hydraulic-fracturing/07102021/comstock-resources-divests-bakken-assets-to-northern-oil-gas/