Comstock Resources (CRK) has entered the Permian Basin through the acquisition of 68,000 gross acres in Reeves County, Texas. The acreage is prospective for Bone Spring formation and the Wolfcamp Shale, and is located in the Delaware Basin.
Comstock Resources will pay $332.7 million to Eagle Oil & Gas Co. and various other parties. The acquired properties are mostly undeveloped, but have proved reserves of 23.2 million barrels of oil equivalent (BOE) and daily production of 1,400 BOE per day.
Comstock Resources estimates that the company has 900 vertical drilling locations into the Wolfbone and resource potential of 178 million BOE.
Comstock Resources said that the acreage has twenty nine producing wells and five wells that are being completed. The deal is expected to close in December 2011 and will be funded through the company’s credit facility.