Comstock Resources, Inc. has announced that its 49% owned subsidiary Bois d'Arc Energy, Inc. entered into a definitive merger agreement with Stone Energy Corporation pursuant to which Stone will acquire Bois d'Arc. Under the terms of the merger agreement, Bois d'Arc shareholders, including Comstock, will receive $13.65 in cash and 0.165 shares of Stone common stock for each share of Bois d'Arc. Comstock will receive $440 million in cash and 5,317,069 shares of the common stock of Stone for its stake in Bois d'Arc.
Completion of the transaction is subject to approval by the Bois d'Arc and Stone stockholders, regulatory approvals, and other customary conditions. Concurrent with the execution of the merger agreement, Comstock entered into a stockholder agreement in which it has agreed to vote in favor of the merger.
"We are very excited about this combination and are enthusiastic about our 13% post merger ownership in Stone Energy," stated M. Jay Allsion, Chief Executive Officer of Comstock. "Stone has made significant strides in positioning itself as a leader in the Gulf of Mexico and the Bois d'Arc team has done an outstanding job of creating value since Bois d'Arc's inception."