KKR in $233m deal for Eagle Ford slice

by on July 30, 2012 8:52 pm BST

KKR is paying the US junior $25,000 per acre in the form of a drilling carry and has already committed to funding the first 100 wells in the campaign, Comstock said.

Comstock’s acreage lies in Atascosa, Frio, Karnes, LaSalle, McMullen and Wilson counties.

The company has drilled 16 Eagle Ford wells so far this year with an average initial production rate of 565 barrels of oil equivalent per day.

Comstock’s earnings have been hit by continued low US natural gas prices as the company reported a net loss of $10.3 million ($0.22 per share) for the second quarter compared to a profit of $3.9 million (7 cents per share) a year ago.

Production increased about 6% to 25.4 billion cubic feet of natural gas equivalent, the vast majority of which was natural gas.

However, Comstock received just $2.03, on average, per thousand cubic of gas, more than 50% lower than the same period last year.