Comstock sells stake in Bakken assets to Northern Oil and Gas for $ 154 million


Oct. 7 (Reuters) – Dallas Cowboys owner Jerry Jones, Comstock Resources (CRK.N) on Thursday agreed to sell his assets in the Bakken Basin, North Dakota, to Northern Oil and Gas for $ 154 million of dollars, in order to strengthen its capital.

Oil and gas companies have sought to sell assets to profit from rising commodity prices as well as to bolster cash reserves on their balance sheets for dividends and buybacks to counter investor pressure.

Reuters reported last month that Northern was the frontrunner to buy the stake.

The sale includes an untapped working interest in over 400 wells, with production of over 4,500 net barrels of oil equivalent per day.

Comstock said it expects to recognize a pre-tax loss of $ 130 million to $ 140 million on the disposal.

The sale of Comstock’s stake in its Bakken assets comes at a time when transactions are on the rise in Haynesville Shale, Louisiana, where the company produces most of its oil and gas.

The company said it plans to reinvest the proceeds from the sale of the property in the Haynesville Shale development, where it plans to speed up the completion of some wells. Comstock could also use part of the proceeds to lease land and finance additional drilling activity in 2022.

Comstock’s competitors in Louisiana, Southwestern Energy (SWN.N) and Chesapeake Energy (CHK.O) recently bought Indigo Natural Resources and Vine Energy, respectively, as they seek to expand in the Haynesville Basin, located at proximity to hubs which export liquefied products. natural gas.

Northern, which invests in untapped minority mining and mining stakes in oil and gas properties, had earlier this year acquired stakes in the Permian Basin of Texas for around $ 102 million and in the gas-rich Marcellus Basin in Pennsylvania for $ 126 million.

Reporting by Arathy S Nair in Bengaluru; Editing by Anil D’Silva

Our Standards: Thomson Reuters Trust Principles.

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