Jones Energy To Acquire Oil & Gas Assets In Anadarko Basin For $195 Mln

(RTTNews) - Jones Energy, Inc. (JONE) Monday announced agreement with a privately-held company to acquire undeveloped oil and gas assets in the Anadarko Basin for $195 million.

The assets acquired include approximately 26,000 net acres in the Cleveland, Tonkawa, and Marmaton plays in the Texas Panhandle and western Oklahoma.

The transaction increases the company's inventory of drilling locations in its core operating areas at an attractive valuation, providing us with increased visibility and sustainability of growth in this productive area.

"We are acquiring appealing assets in the heart of the liquids-rich fairway of our Cleveland play, where we have operated for over 25 years and drilled over 300 horizontal wells, " said Jonny Jones, Chairman and CEO.

These assets will bring Jones Energy's total number of identified Cleveland drilling locations to over 680, providing over seven years of drilling in the Cleveland formation alone at the current pace of eight rigs.

The company confirms its previously announced plans to test the Tonkawa in the first half of 2014. As a result of this acquisition, the company plans to add two rigs to accelerate its overall development program, bringing the total Company rig count from 10 to 12 rigs in 2014.

The transaction is expected to be closed by the end of the year, subject to completion of due diligence and customary closing conditions.