SOCAR and Comstock Strike $1.65 Billion Deal on Haynesville Assets

Comstock Resources has struck two major deals to accelerate development of its natural gas assets. Under a proposed $1.65 billion strategic partnership, Azerbaijan's SOCAR would acquire a 20% non-operated working interest in Comstock's Legacy Haynesville assets and a 15% interest in its Western Haynesville assets.

The Western Haynesville interest would decline to 7.5% after five years and once SOCAR achieves a 15% return on its investment. SOCAR would also acquire 15% of Comstock's ownership interest in Pinnacle Gas Services, which provides midstream services to the Western Haynesville.

In a separate deal, Comstock has entered a $450 million Haynesville drilling venture with Jerry Jones, the company's majority shareholder. The partnership will fund drilling and completion costs for 85% of 18 Western Haynesville wells and 80% of nine Legacy Haynesville wells planned over the next 12 months.

The drilling program will support continued development and delineation of Comstock's approximately 545,000 net acres in the Western Haynesville. According to M. Jay Allison, chairman and CEO of Comstock, 'This partnership introduces a reputable international strategic partner to help accelerate value creation for our investors.'