Frisco, TX-based Comstock Resources is contributing about 300 Bcfe of estimated proved Gulf of Mexico oil and gas reserves and about $102.7 million in related debt to newly created exploration and production venture Bois d’Arc Energy LLC for a 59.9% stake in the new company.
Bois d’ Arc Resources Ltd. and its two principals, Wayne L. Laufer and Gary W. Blackie, also contributed interests in their Gulf properties and certain related debt, together with their interests in Bois d’Arc Offshore Ltd. Certain other parties with working interests in the same properties also are expected to contribute their shares to the new company.
Comstock CEO M. Jay Allison will be the new company’s chairman. Laufer will be its CEO, Blackie will be its president, and Roland O. Burns, Comstock’s CFO, will be Bois d’Arc’s CFO.
“Comstock’s partnership with Bois d’Arc Offshore in the Gulf of Mexico dates back to 1997 with the exploration venture, which has been a major component of our growth over the last six years,” said Allison. “We expect the new venture will be even more successful in exploring for oil and natural gas reserves in the Gulf of Mexico.”
Comstock also has made available to Bois d’Arc a $200 million revolving line, of which $152 million is expected to be outstanding after all parties have contributed their interests. Bois d’Arc is expected to refinance the credit and announce an initial public offering of common stock. Comstock said it plans to maintain a significant ownership share in the company after the refinancing, but if the refinancing and IPO don’t generate sufficient proceeds to repay all of the amounts outstanding under the Comstock credit facility by Dec. 1, Comstock has the right to dissolve and liquidate the new company in a manner to put the contributors in the same economic position that they would have been in if they had never formed Bois d’Arc.
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