Comstock Resources is based in Frisco,
Texas and is engaged in the acquisition, development, production and
exploration of oil and natural gas with operations concentrated in
Louisiana, Texas and North Dakota. Our common stock is listed and
traded on the New York Stock Exchange under the ticker CRK.
Comstock offers potential investors the opportunity to invest in a Company with strong growth potential and a proven track record of successfully developing shale resource plays. In 2020, we are focusing our drilling activities on continued natural gas development in the Haynesville shale using an enhanced completion design. The Company has almost 2,000 drilling locations on its Haynesville/Bossier shale acreage, where the Company estimates to have approximately 18 Tcfe of reserve potential. We have one of the lowest overall cost structures in the industry, driving strong EBITDAX margins of 74% in 4Q19.
At December 31, 2019, we owned interests in 2,800 producing wells. Our oil and gas properties are estimated to have proved reserves of approximately 5.4 Tcfe which are 93% natural gas and 7% oil. Our drilling activity is focused in East Texas and North Louisiana where we have approximately 309,000 net acres prospective for natural gas in the Haynesville or Bossier shale formations. In 2015, we initiated a drilling program based on a new well design that significantly enhanced the economics of these wells. Since that time, Comstock and Covey Park have drilled a total of 217 wells using the enhanced drilling and completion design and these wells had an average per well initial production rate of 25 MMcf per day.
In July 2019, Comstock completed the acquisition of Covey Park Energy for total consideration of $2.2 billion. This acquisition made us the basin leader in the Haynesville shale, which is North America’s premier natural gas basin because of its superior economics and geographic proximity to the Gulf Coast. Our major shareholder, Jerry Jones, invested an additional $475 million in the Company to facilitate the acquisition. Covey Park had 249,000 net acres in the Haynesville/Bossier shale with approximately 1,200 net future drilling locations.
In August 2018 we closed our agreement with Jerry Jones, Dallas businessman and owner of the Dallas Cowboys Football Club Ltd., under which he contributed oil and gas properties in North Dakota in exchange for common stock in the Company. The contribution provided us with substantial cash flow to invest in our high return Haynesville shale drilling program and the capital to further grow our drilling prospect inventory through acquisitions of additional properties in the Haynesville shale. The equity contribution, coupled with the refinancing of our debt at that time, positioned Comstock to be able to achieve greater size and scale in the Haynesville shale.
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CONTACT INVESTOR RELATIONS
Requests for additional information
should be directed to:
5300 Town and Country Blvd.
Frisco, Texas 75034
(972) 668-8834 (direct)