Comstock Resources, Inc. Enters Into New Offshore Exploration Venture With Bois d'Arc Offshore Ltd.
FRISCO, Texas, Aug. 1 /PRNewswire/ -- Comstock Resources, Inc. (NYSE: CRK) ("Comstock" or the "Company") today announced that on July 31, 2001 Comstock entered into a new exploration agreement with Bois d'Arc Offshore, Ltd. and its principals ("Bois d'Arc") which replaces the exploration agreement between the Company and Bois d'Arc entered into in 1997.
The 2001 Exploration Agreement establishes a joint exploration venture between Comstock and Bois d'Arc covering the state coastal waters of Louisiana and Texas and corresponding federal offshore waters in the Gulf of Mexico. The new venture is effective April 1, 2001 and will end on December 31, 2006. Under the joint venture, Bois d'Arc will generate exploration prospects in the Gulf of Mexico utilizing 3-D seismic data and their extensive geological expertise in this region. Comstock will advance funds for the acquisition of 3-D seismic data and leases as needed. After a prospect is identified, Comstock will be reimbursed for the costs that were advanced and will be entitled to a 40% non-promoted working interest in each prospect. Bois d'Arc will have the opportunity to earn warrants to purchase up to 1,620,000 shares of the common stock of Comstock. Warrants to purchase 60,000 shares are earned by Bois d'Arc for each prospect which results in a successful discovery. The exercise price on the new warrants will be determined based on the current market price for Comstock's common stock on a semiannual basis each year that the venture is in operation.
Since Comstock began its exploration program with Bois d'Arc in early 1998, Comstock and Bois d'Arc have drilled 39 offshore wells. Of the 39 wells drilled to date with Bois d'Arc, 26 were successful for a 67% success rate. In 2001 alone, Comstock has drilled nine successful wells under the exploration program with Bois d'Arc out of eleven wells for a success rate of 82%.
"We are very pleased to be able to extend our successful relationship with Bois d'Arc for an additional five years," stated M. Jay Allison, President and Chief Executive Officer of Comstock. "The Gulf of Mexico exploration program with Bois d'Arc has been very successful for Comstock and has added substantial oil and gas reserves for the Company since early 1998. With a higher working interest in new prospects generated under the venture for the next five years, we expect Comstock to continue to create value in the Gulf of Mexico with Bois d'Arc."
This press release may contain "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described herein. Although the Company believes that the expectations in such statements to be reasonable, there can be no assurance that such expectations will prove to be correct.
Comstock Resources, Inc. is a growing independent energy company based in Frisco, Texas and is engaged in oil and gas acquisitions, exploration and development primarily in Texas, Louisiana and the Gulf of Mexico. The company's stock is traded on the New York Stock Exchange under the symbol CRK.
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SOURCE Comstock Resources, Inc.
CONTACT: Roland O. Burns, Sr. Vice President and Chief Financial Officer of Comstock Resources, Inc., +1-972-668-8800/