Jones Energy, Inc. Announces Top-Decile Meramec Well Results, Second Quarter Production and Schedules a Conference Call to Pr...
July 18 2017 - 6:11PM
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 UpdateEastern
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.
Investor Contact:
Page Portas, 512-493-4834
Investor Relations Associate
Or
Robert Brooks, 512-328-2953
Executive Vice President & CFO