Comstock Resources Inc. said it has completed an acreage swap with an undisclosed operator, in an equal exchange where it traded away property in Texas for core acreage and drilling locations in the Haynesville Shale in Louisiana.
In a statement Monday, the Frisco, TX-based operator said it will receive about 3,600 net acres in DeSoto Parish, LA, including four gross (3.5 net) wells with current production of approximately 1.1 MMcf/d net to Comstock's interest. The acquisition also includes 39 drilling locations in the Haynesville, of which 33 are extended reach (7,500-10,000 feet) lateral locations and six are one-section lateral locations.
In exchange, Comstock will divest approximately 2,500 net acres in Atascosa County, TX, which includes seven gross (5.3 net) wells with current production of approximately 110 b/d of oil net to Comstock's interest. The swap is an equal exchange and will require no cash outflow from the company.
"We continue to search for ways to increase shareholder value during the current market downturn", said Comstock CEO M. Jay Allison. "This transaction shows our confidence in the new Haynesville drilling program and our ability to create value even in this low oil and gas price environment."
At the end of 2014, Comstock announced that it would turn away from the Eagle Ford Shale and Tuscaloosa Marine Shale (TMS) so it could focus on dry gas targets and longer laterals in the Haynesville (see Shale Daily, Dec. 18, 2014). It sold properties in Texas's Burleson and Washington counties to an undisclosed buyer for $115 million in July 2015 (see Shale Daily, July 2, 2015).
According to Comstock's most recent presentation from December, Comstock held 81,000 gross (68,000 net) acres in the Haynesville/Bossier Shale, 30,000 gross (22,000 net) acres in the Eagle Ford Shale in South Texas, and 88,000 gross (82,000 net) acres in the TMS.