Jagged Peak Energy Inc., Denver, reported production volumes for fourth-quarter 2017 of 24,037 boe/d (80% oil), an increase of 25% compared with third-quarter 2017. The unaudited volumes were provided on an interim basis because of pending executive management changes.
Jagged Peak Chairman, Pres., and Chief Executive Officer Joseph N. Jaggers plans to retire at the end of March. Current independent director James J. Kleckner will succeed Jaggers in the two roles, remaining on the board, but resigning his positions on the audit and compensation committees. Independent director Michael C. Linn will be elected to Kleckner’s position on the audit committee. Current director Charles D. Davidson, former chief executive officer of Noble Energy Inc., will become chairman.
In addition, J. Jay Stratton Jr., executive vice-president and chief operating officer, has left the company. Craig Walters has been elected to succeed him in the two roles.
Operating update
In this year’s first quarter to date, four gross operated wells have been completed and brought online, and an additional six and seven gross operated wells are currently being completed and waiting on completion, respectively.
In fourth-quarter 2017, Jagged Peak spudded 14 gross operated wells and completed and brought online 14 gross operated wells. The majority of activity in the quarter was focused in the Wolfcamp A, with 11 of the 14 completions in the formation. The company is currently operating four completion crews and five drilling rigs.
For the full year, Jagged Peak produced 16,974 boe/d (80% oil), an increase of more than 200% compared with 2016 production.
Capital expenditures for drilling and completion activities in the fourth quarter were $168.5 million. For the full year, the company spent $567.6 million on drilling and completion activities. Throughout 2017, the company spent $69.1 million to add 9,200 net acres to its leasehold position.
Total proved oil and gas reserves as of Dec. 31, 2017, were 82.4 million boe (80% oil), an increase of 118% compared with proved reserves at yearend 2016. The increase in reserves resulted in a reserve replacement ratio of more than 800% in 2017.
Contact Mikaila Adams at [email protected].