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Domestic energy explorer, Comstock Resources Inc. (CRK - Analyst Report) inked a deal with Ursa Resources Group II LLC to acquire a 70% stake of the latter in the East Texas portion of the Eagle Ford Shale. The deal – involving oil and gas properties in the cities of Burleson and Washington – is priced at $66.5 million. The transaction is expected to close in the current quarter.

Post acquisition, Comstock will own a producing well that has a capacity of 433 barrels of oil equivalent per day (Boed) and an acreage of around 20,000 net acres that holds promise for oil. The company intends to drill around 10 wells during 2014 and as such plans to move an operated rig to the property early next year. The acreage is near an area where industry peers have encountered successful drilling.

Per management, this move will allow Comstock to increase its presence in the Eagle Ford shale and also contribute to its oil drilling inventory. Last week, the company had announced its decision to enter and explore the Tuscaloosa Marine shale – a promising oil play in Louisiana and Mississippi, which will also support its growth.

With consistent weak pricing of natural gas, companies are shifting focus to the lucrative oil market. Acquisitions of such areas that has prospect for oil should be advantageous to the company in the long run.

Frisco, Texas-based Comstock is an independent oil and gas exploration and production company engaged in the acquisition, exploration, and development of oil and gas properties. The company’s operations are concentrated primarily in East Texas/North Louisiana and South Texas.

Comstock currently holds a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.

Meanwhile, one can consider other better-ranked stocks in the same sector such as VOC Energy Trust (VOC - Snapshot Report), SM Energy Company (SM - Analyst Report) and Matador Resources Company (MTDR - Snapshot Report). All these stocks hold a Zacks Rank #1 (Strong Buy).

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