Austin oil and gas firm adds Anadarko Basin assets
Nov 26, 2013
Austin Business Journal
Jones Energy Inc. (NYSE: JONE) said Monday it has entered into a definitive agreement with an undisclosed privately-held company to acquire producing and undeveloped oil and gas assets in the Anadarko Basin for $195 million.
The assets include 26,000 net acres in the Cleveland, Tonkawa, and Marmaton plays in the Texas Panhandle and western Oklahoma, with 92 producing wells and proved reserves of 14.3 million barrels of oil equivalent, the company said in a statement.
The acquisition bring Jones Energy’s total number of identified Cleveland drilling locations to more than 680, providing more than seven years of drilling in the Cleveland formation alone. In addition, the company said it will add two rigs in 2014 to accelerate its development program, boosting its rig count from 10 to 12.
The acquisition is expected to be accretive to earnings and cash flow in 2014.
"Of the 225 high-quality drilling locations we are acquiring, over 185 are in the Cleveland play, where our costs are best in class," said Jonny Jones, Jones Energy chairman and CEO, in the statement. "Jones Energy has a strong track record of identifying and integrating assets in areas we know well, and we expect these wells to deliver the same high returns as those drilled on our existing Cleveland acreage."
The company said it expects to finance the acquisition under its existing revolving credit facility and anticipates it will close by the end of December