Comstock Resources Lands $1.65B Partnership, $450M Drilling Deal
Comstock Resources has announced a $1.65 billion partnership with Azerbaijan's SOCAR and a separate $450 million drilling venture backed by Jerry Jones, its largest shareholder.
The strategic alliance with SOCAR will give the company a significant injection of cash to accelerate work on its Legacy and Western Haynesville natural gas holdings.
Under the terms of the deal, SOCAR will invest $1.65 billion in cash for a 20% non-operated working interest in Comstock's Legacy Haynesville properties and a 15% stake in its Western Haynesville properties. This stake will drop to 7.5% after five years once SOCAR reaches a 15% return on its investment.
Comstock Resources Chairman and CEO M. Jay Allison stated that this partnership brings a respected international strategic ally to help quicken value creation for shareholders, while also enabling a substantial reduction in debt and full funding of the planned Western Haynesville development.