BAKU, Azerbaijan, September 5. A $1.65 billion
strategic partnership with the State Oil Company of Azerbaijan
(SOCAR) is expected to expand access to U.S. natural gas in both
domestic and international markets, U.S.-based Comstock Resources,
Inc., told in an exclusive interview with Trend.


According to the company, the partnership between Comstock and
SOCAR is designed to develop the extensive reserve potential
Comstock holds in the Haynesville shale and deliver supply growth
to meet the growing demand for natural gas from LNG and data center
development.


Comstock noted that, since the company has not yet announced its
2027 investment program, it is currently unable to provide a
specific forecast of how much natural gas production and reserves
will increase as a result of the partnership.


“The transaction proceeds will support Comstock’s balance sheet
and provide additional financial flexibility for the continued
development of its Haynesville assets,” the company stated.


One of the key focuses of the partnership is expanding
Comstock’s access to natural gas in international markets.


"The partnership combines Comstock’s Gulf Coast location near
the US LNG export market, its access to significant reserve
potential to meet long-term demand and contract needs, and
midstream assets in the Western Haynesville with SOCAR’s LNG and
grading platforms through potential LNG marketing opportunities.
The partnership is positioned to maximize price netback in both the
US and internationally while minimizing volatility,” the company
said in a statement.


The company also noted that the partnership will not be limited
to the current agreement.


“Under the terms of the agreement, SOCAR has the opportunity to
participate in future leasing and acquisition opportunities in the
Haynesville,” the statement emphasized.







On September 1 of this year, a letter of intent was signed
between the State Oil Company of Azerbaijan (SOCAR) and the U.S.
company Comstock Resources, Inc. to establish a strategic
partnership.


According to the document, SOCAR will acquire 20% of Comstock’s
interest in the Legacy Haynesville production assets, 15% of its
own interest in the Western Haynesville production assets, and 15%
of Comstock’s 73% interest in Pinnacle Gas Services LLC. SOCAR’s
15% stake in the Western Haynesville assets is expected to be
reduced to 7.5% in accordance with the relevant terms upon
achieving a 15% return on investment in these assets.


The total value of the transaction, subject to standard purchase
price adjustments, is $1.65 billion. SOCAR plans to take the
necessary steps to finance the transaction. The parties intend to
negotiate and sign a definitive purchase agreement no later than
October 31, 2026, and close the transaction by December 31, 2026,
subject to the fulfillment of relevant conditions, including
obtaining the necessary approvals from the government and third
parties.


As part of the strategic partnership, SOCAR plans to participate
in future opportunities created by Comstock in the “Legacy
Haynesville” and “Western Haynesville” fields in accordance with
their respective ownership stakes. In addition, the parties will
collaborate to expand Comstock’s access to international natural
gas markets.


SOCAR President Rovshan Najaf stated: “This partnership brings
together the extensive experience and broad capabilities of SOCAR
and Comstock, creating a solid foundation for the further expansion
of our strategic cooperation. We are pleased to invest alongside a
team with extensive experience in developing the Hainesville and
West Hainesville fields, and we are confident that our long-term
partnership will be a success.”


Jay Allison, Chairman and CEO of Comstock, said: “We are pleased
to announce our strategic partnership with SOCAR. This partnership
will enable us to bring on board a reputable international
strategic partner that will help accelerate value creation for our
investors, while significantly reducing our debt burden and fully
financing the planned development of the West Hainesville area. At
the same time, Comstock will retain operational control of its
production and transportation assets and safeguard the potential
for future value creation through a mechanism that provides for a
gradual reduction of its ownership stake.”


Comstock will remain the operator of all production assets and
will continue to manage and control the operations of Pinnacle Gas
Services LLC. SOCAR’s proportional participation in future
development programs, as well as in new lease agreements and
acquisitions in areas of mutual interest, will be governed by
separate agreements as part of the final transaction.