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Comstock 2016 South Texas Conventional Gas Divestiture

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Fandango Javelina Las HermanitasRosita Other Henry Hub

Opportunity Overview Complete exit from region for Comstock Long-life, shallow decline, legacy natural gas assets located primarily in

Duval, Hidalgo, Kenedy, McMullen, and Zapata counties, Texas Located in the heart of the Tertiary-aged Wilcox and Vicksburg plays Multi-zone, stacked pay potential Major operated fields include the prolific Fandango, Rosita, Javelina, and

Las Hermanitas, which have cumulatively produced over 1 tcfe 9,903 net acres (20,552 gross acres) – 100% HBP Estimated April 2016 net production of ~10.6 mmcfe/d from ~120 gross

producing wells with a PDP R/P of ~14 years 9% next 12-month decline ~109 bcfe proved reserves

Quantified opportunities include large inventory of low-risk workovers, uphole recompletions, and new drilling locations Unquantified opportunities include additional recompletions and

operational improvements

Estimated April CF: $291 m

January LOS coming soon


Property Summary

Note: NYMEX Henry Hub gas price (as of 07-Apr-16) of $2.31/$2.80/$2.88/$2.94/$3.06 per mmbtu for 2016/2017/2018/2019/2020. NYMEX WTI oil price (as of 07-Apr-16) of $39.77/$42.60/$44.57/$46.17/$47.52 per bbl for 2016/2017/2018/2019/2020. Oil and gas prices escalating 5% each year from 2021-2025 and held flat thereafter. 1. Effective working interest calculated by dividing net acres by gross acres.2. PDP NRI is the weighted average NRI (based on gross gas equivalent reserves).

April '16E Net

Field County Operator Gross Acres

Net Acres

Effective WI(1)

PDP NRI(2)

PDP Well

CountProduction Cash Flow Net Proved

ReservesNet Proved

PV-10

(%) (%) (mcfe/d) ($/month) (bcfe) ($mm)

Operated

Fandango Zapata Comstock 3,520 3,520 100% 78% 16 4,960 $187,362 61.0 $35.5

Rosita Duval Comstock 4,516 2,450 54% 41% 22 1,979 $23,216 28.8 $12.9

Javelina Hidalgo Comstock 966 966 100% 70% 17 1,763 $61,669 9.7 $6.7

Las Hermanitas Duval Comstock 813 813 100% 75% 11 1,097 $14,830 5.0 $2.4

Sub-Total 9,815 7,749 66 9,799 $287,078 104.5 $57.5

Non-Operated

Ball Ranch Kenedy Abaco 4,280 1,023 24% 16% 31 390 $48 1.0 $0.4

Dinn Ranch Duval Bluestone 640 96 15% 11% 6 189 $3,535 1.2 $0.6

Lopeno Zapata Bluestone / XTO 5,336 844 16% 14% 17 158 ($741) 1.8 $1.0

Lorenz Ranch McMullen Abaco 481 192 40% 21% 1 36 $705 0.2 $0.1

Sub-Total 10,737 2,155 55 772 $3,547 4.2 $2.1

Total 20,552 9,903 121 10,572 $290,625 108.7 $59.7


Key Investment Highlights – Significant Optimization Opportunities

Regional exit for Comstock

Divestment includes all South Texas conventional assets – all rights, all depths Company remains focused on Haynesville and Eagle Ford

Field staff and contractors available for hire, as needed

Assets undercapitalized

since 2009

Large portion acquired from

Majors

2007 Shell acquisition represents ~2/3 of PDP reserves

A fresh, total field study would likely uncover more upside potential than currently captured in database, as some of the upside analysis is dated

Significant operational

control

93% of net production is operated

Operated fields have very high average working interest (~80% based on net acres)

All lands HBP

Limited contractual requirements Minimal AMI obligations Product marketing contracts are generally evergreen

4

7 9

10

3

-- -- -- -- -- --2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Wel

ls D

rille

d

Company focus shifted to unconventionals

Minimal capital invested

Javelina (Abaco)

Ball Ranch, Lorenz Ranch

(Abaco)

2001 2005 2006 2007

Ball Ranch, Lopeno(DevX)

Las Hermanitas(Denali)

Fandango, Rosita, Dinn Ranch

(Shell)

LegendField

(Seller)


Key Investment Highlights – Significant Upside PotentialLow-risk proved upside

Significant workover and recompletion opportunities

Remain cash flow positive while executing low-risk development plan Multi-year, one-rig workover and recompletion program followed by new

drilling

De-risked opportunities

Workovers supported by historical production, wellwork histories, analogworkovers, production logs, well logs, flow-back tests, etc.

Recompletions supported by pay maps, well logs, and historical producers

164 square miles of seismic available to review in Comstock’s office Available to relicense

Drilling opportunities

Drilling opportunities target known pay supported by well control and offset production

Highest value PUD is a low-risk re-drill of a junked wellbore

Operational improvements

Ramp up slickline surveillance to identify acid job and cleanout candidates

Compression consolidation and optimization

Foam lift optimization (continuous injection)

SWD

Product marketing opportunities

Well Summary

Capex vs. Cash Flow

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2016 2017 2018 2019 2020

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New Drill Recomplete Workover

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1.5%

98.5%

Oil Gas

10.6 mmcfe/d

77%

21%

2%

Wilcox Vicksburg Other

10.6 mmcfe/d

93%

7%

Operated Non-Operated

10.6 mmcfe/d

47%

19%

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10%7%

Fandango RositaJavelina Las HermanitasOther

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Total Production Henry Hub Monthly PDP Cash Flow

Ad Val Tax

Last LOS Data31-Dec-16

Effective Date01-Apr-16

Historical Forecast

Key Investment Highlights – Stable Production and Cash Flow HISTORICAL & FORECASTED NET PDP PRODUCTION & CASH FLOW

APRIL 2016E NET PRODUCTION

BY FIELD AREA BY OPERATORSHIP BY COMMODITY BY FORMATION

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Geological Overview All of the asset reservoirs are Tertiary-aged

Seven of the eight field areas lie within the highly prolific South Texas Downdip Wilcox and Vicksburg trends Multiple pays in fields due to stratigraphic variation Reservoirs are all over-pressured

Producing zones are all conventional-type reservoir plays

Production is primarily gas

164 square miles of seismic available to review in Comstock’s office

STRAT COLUMN


Major Operated FieldsFandango

Largest field by net production and net acreage

Net Production: 5.0 mmcf/d (April 2016E)

16 active producing wells

Produces from the Wilcox formation at a depth of about 14,500’ to 15,500’

3,520 gross acres, 3,520 net acres (100% WI, 80.5% NRI)(1)

Located primarily in Zapata County, Texas

Acquired from Shell in 2007

5 leases operated primarily by Comstock

Field is a rollover anticlinal feature created by a large down-to-the-east listric growth fault lying immediately to the west

Over-pressured and porosities up to 20%

Rosita

Net Production: 2.0 mmcf/d (April 2016E) from multiple Wilcox Sands


Produces from the Wilcox formation at depth around 12,500’-13,000’

Located in Duval County, Texas

Acquired from Shell in 2007

4,516 gross acres, 2,138 net acres (54.2% WI, 81.3% 8/8ths NRI)(1)

18 leases operated by Comstock

Soft sediment deformation by smaller synthetic listric faults break up the overall structure into a series of large slump block features

Fine-grained and low perm with high clay content and variable porosities

Javelina

Net Production: 1.8 mmcfe/d (April 2016E)


Produces from the Vicksburg formation at a depth of about 10,500’ to 11,500’

Located in Hidalgo County, Texas

966 gross, acres, 966 net acres (100% WI, 84.2% NRI)(1)

Acquired from Abaco in 2005

11 leases operated by Comstock

Over-pressured causing well developed secondary porosity away from major fault planes

Las Hermanitas

Net Production: 1.1 mcfe/d (April 2016E)


Produces from the Wilcox formation at depth around 11,000’-12,000’

Located primarily in Duval County, Texas

813 gross acres, 813 net acres (100% WI, 75% NRI)(1)

Acquired from Denali in 2006

5 leases operated primarily by Comstock

1. Based on leases (8/8ths NRI calculated as lease/well NRI divided by associated working interest).


Category Count Net Oil Net Gas Net Total Net Capex Net PV-10 Dev. Costs(mbbl) (mmcf) (mmcfe) ($mm) ($mm) ($/mcfe)

PDP 121 119 53,723 54,438 -- $38.5 n.a.

PDNP 9 -- 21,407 21,407 $5.0 $15.1 $0.23

PBP 16 -- 25,391 25,391 $7.9 $5.5 $0.31

PUD 1 -- 7,500 7,500 $10.6 $0.7 $1.41

Total Proved 147 119 108,021 108,736 $23.4 $59.7 $0.43PROB 9 1 15,565 15,569 $8.1 $7.0 $0.52

POS 6 1 7,364 7,369 $3.5 $4.7 $0.48

3P Total 162 121 130,950 131,675 $35.1 $71.4 $0.45

Estimated Net Reserves and Present Value (PV-10) – Total SummaryComstock Reserve Report as of April 1, 2016

NET 3P RESERVES BY PRODUCTNET 3P PV-10 BY CATEGORY NET 3P RESERVES BY FIELD

54%

21%

8%1%

10%6%

PDP PDNP PBPPUD PROB POS

Net 3P PV-10 $71.4 mm

0.6%

99.4%

Oil Gas

Net 3P Reserves 99.4% gas 52%

30%

7%7%4%

Fandango RositaJavelina Las HermanitasNon-Op Fields

Net 3P Reserves 131,675 mmcfe

Note: NYMEX Henry Hub gas price (as of 07-Apr-16) of $2.31/$2.80/$2.88/$2.94/$3.06 per mmbtu for 2016/2017/2018/2019/2020. NYMEX WTI oil price (as of 07-Apr-16) of $39.77/$42.60/$44.57/$46.17/$47.52 per bbl for 2016/2017/2018/2019/2020. Oil and gas prices escalating 5% each year from 2021-2025 and held flat thereafter. Excludes 2 PDNP, 2 PBP, 9 PUD, 15 PROB, and 18 POS upside cases that are not PV-10+ at the current price deck.Marginal PDP wells that are currently cash-flow negative are forced to run for 4 months.


Additional Transaction InformationConfidentiality Agreement Download at http://datarooms.bmo.com Email signed copy to [email protected] Materials Reserve and Net LOS data currently available Full evaluation data available week of April 11, 2016 Includes supporting documents such as land, commercial

assumptions, and technical support Comstock Reserve Report in ARIESData Rooms (Houston, TX) Opens April 4, 2016 After executing a Confidentiality Agreement, please contact Chelsea

Neville at [email protected] (713-546-9703) to schedule a Data Room appointment

Additional Questions & Inquiries Submit to [email protected] Offers Due early May Bid Instructions will be provided to participants prior to Bid Date

These materials are confidential and proprietary to, and may not be reproduced, disseminated or referred to, in whole or in part without the prior consent of BMO Capital Markets (“BMO”). These materials have been prepared exclusively for the BMO client or potential client to which such materials are delivered and may not be used for any purpose other than as authorized in writing by BMO. BMO assumes no responsibility for verification of the information in these materials, and no representation or warranty is made as to the accuracy or completeness of such information. BMO assumes no obligation to correct or update these materials. These materials do not contain all information that may be required to evaluate, and do not constitute a recommendation with respect to, any transaction or matter. Any recipient of these materials should conduct its own independent analysis of the matters referred to herein.BMO Capital Markets is a trade name used by BMO Financial Group for the wholesale banking businesses of Bank of Montreal, BMO Harris Bank N.A. (member FDIC), Bank of Montreal Ireland p.l.c, and Bank of Montreal (China) Co. Ltd and the institutional broker dealer businesses of BMO Capital Markets Corp. (Member SIPC) in the U.S., BMO Nesbitt Burns Inc. (Member Canadian Investor Protection Fund) in Canada and Asia and BMO Capital Markets Limited (authorised and regulated by the Financial Conduct Authority) in Europe and Australia. “Nesbitt Burns” is a registered trademark of BMO Nesbitt Burns Inc., used under license. “BMO Capital Markets” is a trademark of Bank of Montreal, used under license. "BMO (M-Bar roundel symbol)" is a registered trademark of Bank of Montreal, used under license. ® Registered trademark of Bank of Montreal in the United States, Canada and elsewhere. ™ Trademark of Bank of Montreal in the United States and Canada.BMO does not provide tax or legal advice. Any discussion of tax matters in these materials (i) is not intended to be used, and cannot be used or relied upon, for the purposes of avoiding any tax penalties and (ii) may have been written in connection with the “promotion or marketing” of the transaction or matter described herein. Accordingly, the recipient should seek advice based on its particular circumstances from an independent tax advisor.All values in this document are in US$ unless otherwise specified

BMO Capital Markets – Project Team

Disclaimer

Geoff RobertsMD / Head of US A&[email protected]

Dan SchocklingDirector / [email protected]

Howard BarnwellDirector / Transaction [email protected]

Sherri ClarkSenior [email protected]

Eric MonusVP / [email protected]

Bids due early May

Data Room presentations

Bob Maurer, CPGSenior [email protected]

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