Comstock Resources Inc. (NYSE: CRK) is unloading conventional gas assets in South Texas with proceeds earmarked for the Haynesville Shale, the company said Oct. 17.
The Frisco, Texas-based agreed to sell the properties to an undisclosed company for $28 million. The sale includes 9,904 net acres of legacy gas assets in Duval, Hidalgo, Kenedy, McMullen and Zapata counties, Texas.
Proceeds from the sale will fund additional 2016 drilling in the Haynesville, where the company recently restarted operations.
“This sale strengthens our balance sheet by providing additional liquidity and helps fund our Haynesville shale drilling program,” M. Jay Allison, Comstock’s CEO, said in a statement.
Although the sale slightly improves Comstock’s liquidity, Capital One Securities estimates it is actually slightly dilutive to the company's leverage ratios. The sale price is also less than the firm’s $35 million to $45 million estimated for the properties, Capital One said in an Oct. 17 report.
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