Comstock Resources offering U.S. shale oil and gas assets, document shows
By Liz Hampton August 18, 2021
Aug 18 (Reuters) - Dallas Cowboys owner Jerry Jones' Comstock Resources (CRK.N) oil company is offering to sell properties in North Dakota's Bakken oilfield, a marketing document seen by Reuters shows, as rising energy prices lift buying and selling in the sector.
Crude oil prices are up about 38% year-to-date as economies bounce back and fuel demand recovers from travel restrictions to curb the pandemic. U.S. shale oil companies also are seeking larger scale to drive returns and operational efficiency.
A representative for Comstock did not immediately respond to a request for comment.
The properties on offer include a non-operated working interest in 436 wellbores. The holdings are valued at about $200 million based on futures pricing, according to the document.
The 427 actively producing wells in the portfolio most recently had a six-month average net production of 6,400 barrels of oil equivalent per day, the teaser said.
The value of second-quarter deals this year hit $33 billion for more than 40 deals - the highest quarterly value since the second quarter of 2019, consultancy Enverus found.
Comstock's decision to offload its Bakken assets comes as deal activity is rising in the Haynesville shale in Louisiana, where it produces most of its energy. Louisiana rivals Southwestern Energy recently bought Indigo Natural Resources and Chesapeake Energy's acquired Vine Energy.
"High oil prices and a resurgence in Bakken M&A activity may have led to the company’s decision to market its non-operated interests to help fund participation in Haynesville consolidation," said Andrew Dittmar, a senior M&A analyst with data provider Enverus.
Castleton changed their name. It is now TG Natural Resources (TGNR NLA LLC)
Thanks. I suspect there is Private Equity money behind these acquisitions and the name change. Castleton, now TGNR NLA, has acquired two horizontal upstream assets but does not appear to have any experience as a horizontal operator. Looks like bargain basement acquisitions with TGNR acting as operator of existing wells but no intent to drill new wells in the near future. Considering the low remaining reserves in both assets, I'm unsure what comes next.
TGNR = Tokyo Gas Natural Resources
TG Natural Resources is jointly owned by Castleton Commodities International LLC (30%) & Tokyo Gas Co., Ltd. (70%)
Tokyo Gas Co., Ltd. is Japan’s largest provider of city gas, serving more than 12 million customers for over 130 years, primarily in the Tokyo metropolitan area & surrounding Kanto region.
TG Natural Resources owns over ca. 304,000 net acres, which produced over 385 million cubic feet equivalent per day (ca. 20% liquids) as of December 2020 predominately sourced from the prolific Haynesville & Cotton Valley formations in East Texas & Northern Louisiana.
Thanks, Tom. For those who wish to look up the well list for the company, use TGNR TVL LLC.