Frisco, TX-based Comstock Resources Inc. said it bought 20.2 Bcfe of proved gas and oil reserves in the Las Hermanitas field in Duval County in South Texas from Denali Oil & Gas Partners LP, Stalker Energy LP and other working interest owners for $67.2 million. The properties include three producing wells that are producing 6.4 MMcf/d of gas. Comstock said 43% of the proved reserves are in the proved developed category. The undeveloped proved reserves are in four locations. Future development costs are estimated to total $17.5 million. In addition to the proved reserves, Comstock estimates that the properties have probable reserves of 14.7 Bcf in eight additional drilling locations. Comstock also has identified an additional six possible drilling locations with an 8 Bcf of reserves. “This transaction will build up our South Texas operating region and has substantial upside beyond the proved reserves from the 18 identified drilling locations,” said Comstock CEO M. Jay Allison. The transaction is expected to close in September 2006 and will be funded with borrowings under Comstock’s bank credit facility.
Denver-based Gasco Energy Inc. has acquired some gathering assets and producing properties in the Uinta Basin for $4.875 million cash plus settlement for production from the effective date of July 1. The gathering assets and properties, purchased from an undisclosed seller, are located entirely within Gasco’s existing Riverbend leasehold. The company assigned a value of $2.5 million to the gathering assets, which include 21 miles of 4/8 inch diameter mainline gathering pipelines. Gasco now controls more than 80 miles of mainline gathering and a 50 MMcf/d gas processing facility in the Riverbend Project. Gasco previously announced an $80 million 2006 capital budget that included $5 million to connect its Wilkin Ridge and West Desert gathering systems to its Riverbend gas processing plant. The gathering lines acquired in this transaction may be tied into these systems at an estimated cost of $1.5 million, allowing the company to potentially realize a savings of $1 million versus amounts previously budgeted. Also included in the acquisition are 24 oil and gas wells producing 850 Mcfe/d gross (680 Mcfe/d net). In the transaction, Gasco acquired approximately 1.6 Bcfe of proved reserves. The acquisition has no effect on gross acreage leasehold positions and a negligible effect on net acreage leasehold totals.
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