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Permalink Reply by JHH on December 19, 2018 at 16:19

Here's the copy in case the link doesn't work

Comstock Resources, Inc. (NYSE: CRK) announced today that it has entered into an agreement with Shelby Shale, LLC ("Shelby") to acquire an 88% interest in 6,124 gross acres (6,023 net) limited to Shelby's Haynesville shale rights in Harrison and Panola counties, Texas for $20.5 million. Comstock will pay the purchase price over a four year period by granting Shelby a 12% interest in each well drilled by Comstock on the acreage up to a total of $20.5 million in carried costs. Comstock has identified 33 (22.9 net) potential drilling locations on this acreage, including 27 (22.4 net) that would be operated by Comstock.

"The additional acreage added by the Shelby acquisition is near our recently acquired Enduro acreage," stated M. Jay Allison, Chief Executive Officer of Comstock. "This acreage enhances our long-term opportunity set in the Haynesville shale and will be incorporated into our drilling plans over the next four years."

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Permalink Reply by ken hatcher on December 19, 2018 at 16:52

Jerry has been looking since Oct, might be a good play at current price.

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Permalink Reply by Skip Peel - Mineral Consultant on December 20, 2018 at 3:57

Congratulations to the Shelbys.  Comstock is a capable partner that is prioritizing this NW corner of the Haynesville Fairway.  I was pleased to provide some of the research used in negotiations.  Julie assisted.

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Permalink Reply by Thomas C. McKowen, IV on December 20, 2018 at 9:52

Do you know if the leases sold are mainly in a particular area or if they are spread throughout the two counties?

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Permalink Reply by Skip Peel - Mineral Consultant on December 20, 2018 at 10:02

I have the leasehold mapped.  Two clusters, one south of I-20 (Panola) and one north (Harrison).  The north clusters abut the state line.  The south is a single contiguous operating area near to but not on the state line.  Highly concentrated, not spread out.  This is a farm out of the deep rights, not a sale of leases.  Shelby will continue to operate the shallow rights.

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Permalink Reply by Thomas C. McKowen, IV on December 20, 2018 at 10:26

Thanks for the information.

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