Comstock Resources uses sale to fund Haynesville work
Texas-based Comstock Resources said October 7 its sale of acreage in the Bakken formation would help fund re-investments in the gas-rich Haynesville shale.
Comstock entered into a definitive agreement with Minnesota-based Northern Oil & Gas to sell its interests in more than 400 non-operated wells in the Bakken shale for $154mn in cash.
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Recent production is around 4,500 barrels of oil equivalent/day, of which 45% is natural gas. Comstock said it plans to use the proceeds to re-invest into its Haynesville shale development programme.
The Haynesville play yields only small amounts of oil, but is the third-largest natural gas producer behind the Appalachia and Permian basins, respectively. The US Energy Information Administration expects production from Haynesville to average 13.5bn ft3/d this month, compared to the 34.8bn ft3/d from the Appalachia basin and the 18.7bn ft3/d from the Permian.
For Northern, the company said the strength from the acquired properties prompted management to recommend a 33.3% increase in common stock dividends for the fourth quarter.