Cowboys’ Jerry Jones Buys Into Comstock

May 11, 2018

 

Comstock Resources announced Thursday it is acquiring $620 million worth of the North Dakota oil and gas assets belonging to Dallas Cowboys owner Jerry Jones, in a stock purchase agreement that will blend the three companies into a joint venture, giving Jones 84% of Comstock.

His Dallas company Arkoma Drilling, L.P. and Irving-based Williston Drilling, L.P. are selling Bakken Shale play land producing 10,500 barrels of oil per day and 20 MMcf of natural gas per day, with proved reserves, as estimated by Comstock’s independent reserve engineers, of about 22.5 million barrels of oil and 48.5 billion cubic feet of natural gas, according to Comstock.

As part of the deal, Frisco-based Comstock will acquire 332 producing oil wells, 128 drilled uncompleted wells and ten undrilled locations.

The effective date of the deal is retroactive to April 1st, but it still has to meet shareholder approval and “satisfaction of certain other closing conditions including the refinancing of the Company’s debt.”

In the last four years, Arkoma has invested more than $1 billion in unconventional shale drilling.

One this deal is completed, Arkoma and Williston will own about 84% of the Comstock’s pro forma outstanding shares.