(2) Acquisitions and Dispositions of Oil and Gas Properties

In 2017, the Company entered agreements to jointly develop certain acreage prospective for the Haynesville shale in Louisiana and Texas with USG Properties Haynesville, LLC ("USG"). As of December 31, 2017, USG had acquired approximately 6,300 net acres prospective for Haynesville shale development for the joint development program primarily in Caddo Parish, Louisiana. The Company operates wells drilled on USG's acreage and has the right to acquire a 25% working interest in the acreage by reimbursing USG for the attributable acreage costs of the wells being drilled increasing to 40% starting with the 13^th well drilled. USG is also participating in four wells being drilled in the Company's Bossier shale acreage in Sabine Parish, Louisiana and in a Haynesville shale drilling program on approximately 5,700 acres of Comstock's acreage in Harrison County, Texas. Under the terms of the participation agreements for Sabine Parish and Harrison County acreage owned by the Company, Comstock will receive between $1.1 million and $1.4 million, respectively, for 50% of Comstock's interest for each location for acreage and infrastructure related to each well location, with $400,000 of that amount being paid only if each well meets or exceeds established production targets. Comstock also receives $80,000 for each well drilled as consideration for the Company's services managing the joint development program in addition to customary operating fees for each well drilled except for the four Bossier shale wells. Comstock and USG plan to continue to acquire additional acreage for the joint development program.

Results of operations for the properties that were sold and classified as held for sale in 2015, 2016 and 2017 were as follows:

	Year Ended December 31,
	2015			2016			2017
	(In thousands)
Total oil and gas sales	$	157,956		$	63,303		$	48,949
Total operating expenses⁽¹⁾		(274,651	)		(80,467	)		(44,861	)
Operating income (loss)	$	(116,695	)	$	(17,164	)	$	4,088

(1)	Includes direct operating expenses, depreciation, depletion and amortization and exploration expense. Excludes interest expense, general and administrative expenses and depreciation, depletion and amortization expense subsequent to the date the assets were designated as held for sale.

In October 2017, Comstock adopted a plan of sale for its oil properties located in South Texas. The Company recognized an impairment of $43.8 million in the fourth quarter of 2017 to adjust the carrying value of these assets to their fair value less costs to sell. We determined the fair value based on estimated discounted future net cash flows of the properties appropriately risk adjusted based on indication of values received from potential acquirers in a competitive bid process. There can be no assurance that we will ultimately be able to complete a sale of the properties at the estimated fair value. The asset retirement liability of $4.6 million associated with these assets was reclassified to current liabilities as of December 31, 2017. In December 2016, the Company sold certain of its natural gas properties located in South Texas realizing net proceeds of $25.8 million. The Company recognized a loss on the sale of these assets in 2016 totaling $13.4 million and an impairment of $20.8 million in the first quarter of 2016 to adjust the carrying value of these assets to their fair value. The Company also sold certain other oil and gas properties during 2016 for total proceeds of $2.1 million. The Company recognized a loss of $1.6 million on these divestitures. In July 2015, the Company sold its Burleson County, Texas properties for proceeds of $102.5 million, recognizing a net loss on sale of $112.1 million.

In January 2016, the Company exchanged certain oil and gas properties with another operator in a non-monetary exchange. Under the exchange, the Company received 3,637 net acres in DeSoto Parish, Louisiana, prospective for the Haynesville shale, including four producing wells (3.5 net). The Company exchanged 2,547 net acres in Atascosa County, Texas, including seven producing wells (5.3 net) for the Haynesville shale properties. The Company recognized a gain of $0.7 million on this transaction which was included in the loss on sale of oil and gas properties for the year ended December 31, 2016.