Comstock Resources is selling West Texas assets in Gaines and Reeves counties for $768 million to Rosetta Resources. The sale provides capital that will allow Comstock to speed up Eagle Ford development.
In February, the company planned 42 gross (27.3 net) wells in the Eagle Ford and has now increased it’s drilling plans to 72 gross (46.9 net) wells. The company plans to spend $312 million, of its company-wide $410 million budget, in the Eagle Ford. The number of rigs Comstock is utilizing in the play will increase from three in early 2013 to six in the second half of the year.
“This transaction substantially enhances our balance sheet by providing us with an opportunity to improve our liquidity and leverage position. The sale will also yield a strong return for our stockholders on our investment in this region,” stated M. Jay Allison, Chief Executive Officer of Comstock. “We will now direct our resources to accelerate the development of our oil properties in the Eagle Ford shale in South Texas.”
Read more about the deal at comstockresources.com