Comstock acquires Ovation assets

Ray Tyson

Exploration and production independent Comstock Resources has agreed to buy nearly all the assets of Ovation Energy for $62.5 million, Comstock said Aug. 25. The properties are located in the East Texas, Arkoma, Anadarko and San Juan basins.

Frisco, Texas-based Comstock estimated the properties contain proved reserves of 42.7 billion cubic feet of gas equivalent, consisting of 99 percent natural gas. Sixty-six percent fall into the proved developed category, the company added.

The Ovation properties include 161 active wells. Comstock said it would operate 69 of the wells. The properties currently produce about 7 million cubic feet of natural gas equivalent per day. The transaction is expected to close on Oct.1 of this year.

Comstock said it also hedged a portion of its natural gas production in 2005 and 2006 related to the acquisition and to its recently expanded East Texas drilling program.