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

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(Businesshala) – Comstock Resources of Dallas Cowboys owner Jerry Jones on Thursday agreed to sell its assets in North Dakota’s Bakken Basin to Northern Oil and Gas for $154 million, as it looks to shore up capital .

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Oil and gas companies are looking to sell assets to increase cash reserves on their balance sheets for dividends and buybacks to take advantage of rising commodity prices, as well as to counter investor pressure.

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Businesshala reported last month that Northern was the first to buy a stake.

The sale includes a non-operated working interest in more than 400 wells producing more than 4,500 net barrels of oil equivalent per day.

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

Comstock’s stake sale in its Bakken assets comes at a time when deal activity is increasing at the Haynesville shale in Louisiana, where the company produces most of its oil and gas.

The company said it plans to reinvest proceeds from the sale of the asset into the development of the Haynesville Shale, where it plans to accelerate the completion of some wells. Comstock could use a portion of the proceeds to lease land and fund additional drilling activity in 2022.

Comstock’s Louisiana rivals Southwestern Energy and Chesapeake Energy recently bought Indigo Natural Resources and Vine Energy, respectively, as they look to scale up in the Haynesville Basin, which is located close to centers exporting liquefied natural gas.

Northern, which invests in non-operated minority working and mineral interests in oil and gas assets, earlier this year raised stake in Texas’ Permian Basin for about $102 million and Pennsylvania’s gas-heavy Marcellus Basin for $126 million. was achieved.

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

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