By Ryan Dezember

Comstock Resources shares are up big after the natural-gas producer controlled by Dallas Cowboys owner Jerry Jones unveiled its latest drilling play in east Texas.

Comstock said it has amassed rights to drill more than 500,000 acres and built with a financial partner 246 miles of pipelines. It has drilled several gushers in the area, a rural stretch between Houston and Dallas. The stock, which has more than doubled over the past year, gained more than 7% Wednesday.

Wall Street has known for a few years that Comstock was drilling 18,000 feet or deeper into the Haynesville and Bossier shale formations far west of the Texas-Louisiana border, where it and other producers have long sunk prolific gas wells.

On Wednesday, Comstock disclosed the extent and location of its new play. CEO Jay Allison told investors that it has spent the past five years studying geologic data and stealthily signing about 20,000 drilling leases. Jones, of NFL fame, boosted his stake in Comstock to more than $1 billion to help the company fund the leasing.

"We've been very cautious," Allison told investors. "We think the land grab is over so we can give you the footprint."

Comstock was among the big U.S. gas producers that dialed back last year when gas prices fell to historic lows. Producers' restraint, rising demand from gas-burning power plants and really cold weather this winter have reduced the gas glut and lifted prices for the fuel to more than twice what they were a year ago.

In response to higher prices, Comstock said it would run seven drilling rigs on its properties this year, up from five last year.

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(END) Dow Jones Newswires

February 19, 2025 13:42 ET (18:42 GMT)

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