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"I have followed Comstock for many years and their leadership in driving the reemergence of the Haynesville shale,” said Jones. “I believe strongly in the future of Comstock and the proven track record of its management team. This significant cash investment, which will help complete their comprehensive refinancing program, reflects my desire to become one of Comstock’s largest shareholders.”

Comstock has also agreed to enter into a Strategic Drilling Venture with Arkoma. Arkoma will participate in drilling projects proposed by Comstock in the Haynesville and Bossier shale in East Texas and North Louisiana and the Eagle Ford shale in South Texas. Comstock will receive a 20 percent carried interest for projects that Arkoma participates in and Arkoma will only earn an interest in the well bore for projects they participate in and will not have rights to any related acreage. The new venture will have a two-year term beginning after the refinancing transactions have been completed. Comstock will offer a minimum of $75 million in opportunities in the first 12 months and $100 million in the second 12 months.

The Strategic Drilling Venture will enable Comstock to grow its prospect inventory, increase its capital efficiency by 20 percent for venture projects, and provide capital to address drilling required to maintain leases, according to the company. The new drilling venture with Arkoma will also allow Comstock to implement a larger drilling program, which will create efficiencies and lower service costs while also keeping Comstock’s capital expenditures within operating cash flow. The investment and relationship with Jones also gives Comstock a nationally recognized partner to assist with future acquisitions.

The successful completion of these transactions substantially reduces the Company’s debt, addresses the overhang of Comstock’s current capital structure and clears the maturity runway for the next four years. As a result, Comstock will become one of the leading scaled and prudently financed public companies operating in the Haynesville shale.

"This refinancing will simplify our capital structure and allow us to focus on growing stockholder value," stated M. Jay Allison, CEO of Comstock. "The resulting lower interest expense and benefits of the new drilling venture will allow us to increase drilling activity and grow production while spending within our operating cash flow."

Comstock also announced that it has entered into a definitive purchase and sale agreement with USG Energy Producer Holdings LLC to sell Comstock’s producing oil and gas properties in McMullen, LaSalle, Frio, Atascosa, Wilson, and Karnes counties, Texas for a sale price of $125 million, subject to customary adjustments. The properties being sold include the 191 producing oil wells that Comstock has an interest in and approximately 9,900 net acres associated with the producing wells. The properties are producing approximately 2,027 barrels of oil per day and 3 million cubic feet per day of natural gas. At December 31, 2017, Comstock’s proved reserves included approximately 7.1 million barrels of oil and 10.5 billion cubic feet of natural gas related to the interests being sold. The sale, which is subject to customary closing conditions and to final board approval by USG, is expected to close by April 30, 2018, and will have an effective date of November 1, 2017. BMO Capital Markets Corp. is acting as exclusive advisor on the sale.

Comstock is retaining approximately 8,700 net undeveloped acres that are prospective for Eagle Ford shale development. Comstock has identified 218 drilling locations on the acreage. Subsequent to the closing, Comstock and USG intend to enter into a joint development venture on this acreage and the acreage being acquired by USG and intend to start a drilling program in the third quarter of this year to develop these opportunities.