Under the agreement, KKR will now be able to participate for one-third of Comstock’s working interest in wells drilled on the latter’s 28,000 net acres, by paying $25,000 per acre for the next 100 wells drilled at the site and acquiring drilling carry for the net acreage.
Comstock chairman, president and chief executive officer M. Jay Allison said, "This transaction will provide the capital necessary to accelerate drilling of this exciting oil play, while still allowing us to have the capital to develop our Wolfbone properties in West Texas."
The acreage is expected to be developed by Comstock based on spacing units of approximately 80 acres.
As part of the agreement, KKR will acquire drilling from the wells spud by Comstock on or subsequent to 31 March 2012, while the latter will retain all of its interest in wells spud prior to 31 March 2012.
KKR managing director David Rockecharlie said, "We believe Comstock has developed an attractive inventory of drilling locations, and we look forward to participating as a non-operating working interest partner."