AUSTIN, Texas, July 18, 2017 (GLOBE NEWSWIRE) -- Jones Energy, Inc. (NYSE:JONE) (“Jones Energy” or “the Company”) today announced initial production rates for the Company’s Merge wells, second quarter production, and has scheduled a conference call with management to discuss mid-year updates. The conference call is scheduled for tomorrow, July 19, 2017 at 10:30 a.m. ET.
Highlights:
- BOMHOFF #2, JONE’s first Meramec well, achieves top decile of Merge wells, reaching a peak rate of 650 Bo/d and 6,306 Mcf/d.
- BOMHOFF #1, JONE’s first Woodford Generation 3 frac, shows 3x uplift from Generation 2 frac average, achieves peak rate of 278 Bo/d and 3,574 Mcf/d.
- Second Merge rig deployed as planned July 1, 2017.
- Arkoma divestiture is anticipated to close on August 1, 2017.
- Second quarter production of approximately 23,800 Boe/d, exceeding high end of guidance.
Jonny Jones, the Company’s Founder, Chairman and CEO said, “We now believe the Meramec to be a proven resource across our Merge acreage and I am proud to announce outstanding well results today. Our second rig was added on-schedule starting July 1st and is currently drilling our eighth well in the program while our other rig is drilling our ninth well in the Merge. I look forward to discussing additional details of our initial results on the management call tomorrow.”
2017 Program Update
Eastern Anadarko (Merge)
Initial production results from the Company’s Merge program include Jones Energy’s first Meramec well, the BOMHOFF 20-12-7 2H, an Upper Meramec target drilled to a 4,428’ lateral length, reached a peak rate of 650 Bo/d and 6,306 Mcf/d. This well has achieved the top decile of wells drilled to-date in the Merge. Jones Energy’s first Woodford Generation 3 frac, the BOMHOFF 20-12-7 1H, was drilled to a 4,366’ lateral length from the same pad, and achieved a peak rate of 278 Bo/d and 3,574 Mcf/d. The Company’s second Meramec well, the GARRETT 4-11-6 1H, an Upper Meramec target was drilled to a 4,697’ lateral length and has achieved rates to-date of 672 Bo/d and 1,580 Mcf/d with rates still increasing. The GARRETT has already exceeded oil rates of the best-in-class BOMHOFF #2 well.
Jones Energy deployed its second rig in the Merge as planned on July 1st and continues to anticipate adding a third rig by year-end. The Company has drilled and completed its first six wells (four Woodford, two Meramec) which are on production, and has its seventh well (Meramec) undergoing completions. One of the rigs is currently drilling the two-well HARDESTY pad, while the other rig is drilling the Company’s first three-well pad, the ROSEWOOD, that includes two stacked Meramec wells and a Woodford well. The ROSEWOOD pad is located adjacent to the BOMHOFF pad.
Western Anadarko (Cleveland)
Jones Energy is running three rigs in the Western Anadarko, two which are focused on core Cleveland drilling and the third which is dedicated to long lateral drilling in Hutchinson County, TX. The Company plans to maintain the existing rig schedule, but acknowledges that it has a high degree of flexibility in the 2017 program and could take swift action to reallocate or reduce capital, if warranted.
Production Update
Jones Energy expects second quarter production of approximately 23.8 MBoe/d, or 2.17 MMBoe, which is approximately 10% above the top end of prior guidance of 20.7 – 21.7 MBoe/d for the quarter. The Company believes it remains on pace to achieve its full year 2017 production guidance of 20,700 to 23,000 Boe/d.
Non-Core Asset Sales
Jones Energy expects the previously announced divestiture of its Arkoma Basin properties to close on August 1, 2017. As previously announced, the Company expects a sale price of $65 million cash, subject to closing adjustments, plus up to $2.5 million contingent payment based on improving natural gas prices. To-date in 2017, the Company has sold an additional $2.5 million of non-core assets, bringing total non-core divestitures, including the Arkoma Basin properties but excluding the contingent payment, to $67.5 million. Jones Energy continues to market additional non-core assets.
Conference Call Details
Jones Energy will host a conference call for investors and analysts to discuss its mid-year update with management tomorrow, July 19, 2017 at 10:30 a.m. ET (9:30 a.m. CT). The conference call can be accessed via webcast through the Investor Relations section of Jones Energy’s website, www.jonesenergy.com, or by dialing (833) 231-8272 (for domestic U.S.) or (647) 689-4117 (International) and entering the conference code 58204155.
An updated presentation will be posted to the Investor Relations section of the Company’s website prior to the call.
If you are not able to participate in the conference call, the webcast replay and a downloadable audio file will be available shortly following the call through the Investor Relations section of the Company’s website, www.jonesenergy.com.
About Jones Energy
Jones Energy, Inc. is an independent oil and natural gas company engaged in the development and acquisition of oil and natural gas properties in the Anadarko basin of Texas and Oklahoma. Additional information about Jones Energy may be found on the Company’s website at: www.jonesenergy.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expected timing of the closing of the Arkoma Basin divestiture, the proceeds received therefrom, the Company’s continued marketing of non-core assets, anticipated production for the second quarter and full-year 2017, the deployment of rigs, and the Company’s future operating plans. These statements are based on certain assumptions made by the Company based on management’s experience and perception of historical trends, current economic and market conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements.
Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.