BAKU, Azerbaijan, September 1. A Letter of
Intent has been signed between the State Oil Company of Azerbaijan
(SOCAR) and the U.S. Comstock Resources, Inc. to establish a
strategic partnership.


This was announced in a report released by SOCAR.


According to the document, SOCAR will acquire 20% of Comstock's
stake in Legacy Haynesville upstream assets, 15% of its stake in
Western Haynesville upstream assets, and 15 % of Comstock's 73%
stake in Pinnacle Gas Services LLC. SOCAR's 15% stake in Western
Haynesville assets is expected to be reduced to 7.5% in accordance
with relevant conditions when a 15% return on investment in those
assets is achieved.


The total transaction value, subject to standard purchase price
adjustments, is $1.65 billion. Appropriate measures for financing
the operation are planned by SOCAR. The parties aim to agree and
sign the final purchase agreement no later than October 31, 2026,
and to complete the transaction by December 31, 2026, subject to
the fulfillment of relevant conditions, including the receipt of
necessary governmental and third-party approvals.


As part of the strategic partnership, SOCAR is expected to
participate in the new opportunities to be created by Comstock in
Legacy Haynesville and Western Haynesville in accordance with their
respective participation shares. In addition, the parties will
cooperate to expand Comstock's natural gas access to international
markets.


SOCAR President Rovshan Najaf said that this partnership brings
together the rich experience and extensive capabilities of SOCAR
and Comstock, creating a solid foundation for further expansion of
our strategic cooperation.







"We are pleased to invest together with a team with extensive
experience in the development of the Haynesville and Western
Haynesville fields and believe that our long-term partnership will
develop successfully," he added.


Comstock Chairman and CEO Jay Allison also highly appreciated
the deal.


"We are pleased to announce our strategic partnership with
SOCAR. This partnership will allow us to attract a reputable
international strategic partner that will contribute to
accelerating value creation for our investors. At the same time, it
will significantly reduce our debt burden and fully finance the
planned development of the Western Haynesville area. Moreover,
Comstock will retain operatorship and control over the upstream and
midstream assets, and will also protect the potential for future
value creation through a mechanism that provides for a gradual
reduction in the participation interest," he said.


Comstock will remain the operator of all upstream assets, and
will continue to manage and operate Pinnacle Gas Services LLC.
SOCAR's proportional participation in future development programs,
as well as new leases and acquisitions in areas of mutual interest
will be regulated by separate agreements as part of the final
transaction.