Jones Energy completes deal to enter STACK, SCOOP

Jones Energy Inc., Austin, has closed on its acquisition of 18,000 net acres in the Oklahoma STACK-SCOOP play from Scoop Energy Co. LLC, a platform company of American Energy Partners LP., for $136.5 million.

A majority of the acreage lies in the oil window, with 70% operated at an average working interest of 50%. Jones Energy says the acreage’s recent well results are on par with the best seen in STACK-SCOOP, and multiple target zones provide stacked pay potential.

Jones Energy is already active in the Anadarko basin with three horizontal rigs in the Cleveland play, according to analysis from research and consulting firm Wood Mackenzie Ltd. “The [newly acquired] acreage, located in Canadian, Grady, and McClain counties, sits in-between what we define as core SCOOP and STACK areas, and thus came at the attractive price of [$7,600/net acre]—far less than core acreage, which has sold for as much as [$20,000 /net acre],” WoodMac said after the deal’s initial announcement.

“Despite few horizontal developments in the area, recent well results could be a harbinger of high returns,” it said. WoodMac noted that Tulsa-based Citizen Energy LLC brought three nearby wells online in the past year that delivered IP30 rates of up to 2,000 boe/d with 70% oil, “outperforming legacy wells in the Sycamore and the Woodford and coming online significantly oilier than sub-play type curves we model in the area, which are approximately 40% oil.”

As a result of the deal, Jones Energy is opening an office in Oklahoma City that will be led by Pres. Mike McConnell.

Jones Energy also recently closed on a $27.1-million deal to buy 26,000 net Anadarko basin acres in Lipscomb and Ochiltree counties of the Texas Panhandle. The deal is expected to add 92 gross and 68 net Cleveland locations in the core footprint.

“This high quality acreage is 98% held-by-production and will improve our overall Cleveland inventory by adding 1½ years of drilling inventory at a 3 rig pace,” said Jonny Jones, the company’s founder, chairman, and chief executive officer, upon that deal’s announcement.

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