Comstock Resources Inc. signed a letter of intent with the State Oil Company of Azerbaijan Republic (SOCAR) for a $1.65-billion transaction involving interests in its Haynesville shale assets and related midstream infrastructure while separately launching a $450-million drilling venture with majority shareholder Jerry Jones.

Under the proposed transaction, SOCAR or a wholly owned subsidiary would acquire:

• a 20% non-operated working interest in Comstock's Legacy Haynesville assets.
• a 15% non-operated working interest in its Western Haynesville assets, reducing to 7.5% after 5 years once SOCAR achieves a 15% return on investment.
• a 15% interest in Comstock's 73% ownership stake in Pinnacle Gas Services LLC.

The parties aim to execute a definitive purchase and sale agreement by the end of October and target closing before yearend, subject to customary conditions, including governmental and third-party approvals.

As part of the proposed partnership, SOCAR could participate in future Comstock opportunities in the Legacy and Western Haynesville at the same ownership percentages as would be acquired in the proposed transaction. Comstock also said SOCAR would provide opportunities for Comstock to market its natural gas to international customers.

Drilling venture

Separately, Comstock entered a drilling venture with Jerry Jones under which a Jones family-owned partnership will fund most drilling and completion costs for 27 Haynesville wells over the next 12 months beginning Sept. 1, 2026.

The partnership will fund 85% of drilling and completion costs for 18 Western Haynesville wells and 80% of costs for 9 Legacy Haynesville wells, representing about $450 million of expected capital.

After the venture achieves a 15% return on investment, 50% of the participating interest in the wells will revert to Comstock.

Comstock said the additional capital will support delineation and development of its 545,000 net acres in the Western Haynesville, which the company views as a major source of future supply for Gulf Coast LNG exports, power generation, and data center demand, including the Texas Power Generation Hub in Anderson County, Tex.