Jones Energy Holdings (JEH) has acquired all of the producing properties in the Arkoma Basin owned and operated by Southridge Energy LLC and Pablo Energy II, which includes 20 MMcfe/d of current net production and more than 77,000 gross acres located primarily in the liquids-rich fairway of the Woodford Shale in Oklahoma's Coal and Atoka counties, JEH said Wednesday. Terms of the deal were not disclosed.
JEH will serve as operator of the assets going forward. JEH, Southridge and Pablo have also entered into a joint venture to develop the remaining undrilled locations on the acreage.
"The transaction represents a strategic expansion to JEH's existing operations, which are focused primarily in the Cleveland Sand and Granite Wash formations of the Texas Panhandle," JEH said. The Austin-based exploration and production (E&P) company said it expects to leverage drilling and operational expertise it has developed over the past two decades to develop the remaining undrilled Woodford locations in a low-cost and efficient manner.
"We plan to be active after closing this transaction as we look to expand our presence in both [the Anadarko and Arkoma basins] through additional partnerships and acquisition-related activity," said JEH CEO Jonny Jones.
JEH reported net revenue of $101.1 million in 2010. The company has 382 producing wells with current production of 45,906 Mcf/d and 4,359 b/d.
With the help of financing from private equity firm Metelmark Capital, JEH in December 2009 JEH acquired Crusader Energy Group after that junior E&P company filed for voluntary bankruptcy protection (see Daily GPI, March 31, 2009).