Jones Energy Inc., Austin, has scrapped plans to form a drilling joint venture in the Merge and Western Anadarko basins after a potential financing deal fell through.
In an 8K filing, the company noted DrillCo plans that included 25 Merge wells—where the main targets are Meramex and Woodford—and 40 Western Anadarko wells—where the company hoped to accelerate PUD in core Cleveland—developed through first-quarter 2020.
The company noted positive results of enhanced completion designs on Cleveland wells, which have generated significant performance uplifts (1.5x) in avg 90-day cumulative production compared to 2016-17 wells since the company’s Western Anadarko drilling program restart.
Jones Energy began exploring strategic alternatives—including a possible DrillCo—in late 2017. In 2016, the company acquired 18,000 net acres in the Merge area of the STACK and SCOOP plays of Oklahoma from Scoop Energy Co. LLC for $136.5 million, increasing its existing leasehold in Oklahoma and the Texas Panhandle (OGJ Online, Sept. 28, 2016).
The company noted restructuring in the filing but did not elaborate.
Contact Mikaila Adams at [email protected].
