Comstock Resources, an independent natural gas producer with operations focused on the development of the Haynesville Shale in north Louisiana and east Texas, has received a new $100.5 million investment from its majority shareholder, Jerry Jones.
Through two entities controlled by Jones, the shareholder will acquire 12.5 million shares of common stock in the private placement at a price of $8.036 per share, which represents the average of the closing prices for the five trading days ended March 20.
Comstock will use the proceeds from the equity investment to pay down bank debt, which was partially incurred to fund several recently completed acquisitions of 200,000 net undeveloped acres in Comstock’s Western Haynesville play for $58.7 million.
Following the equity investment, Jerry Jones will own approximately 67 percent of the company’s common shares outstanding, up from 65 percent before this equity investment.
Law firm O’Melveny advised Comstock