Jones Energy, Inc. (JONE) announced today that it recently acquired a contiguous block of 5,120 net acres in Hutchinson County, Texas, prospective for its primary drilling target, the Cleveland sandstone. The lease was acquired on favorable commercial terms similar to recent lease activity by Jones Energy. The lease terms provide Jones Energy with 100% working interest at all depths. The initial block represents 40 net drilling locations in the Cleveland formation, which equates to half a year of drilling inventory at current activity levels. Jonny Jones, Founder, Chairman, and Chief Executive Officer, stated, “Our recent lease acquisition in Hutchinson County will help us continue growing our position in the Cleveland play while potentially adding new target zones through exploration of the stacked pay potential of this new acreage. The company is focused on developing our current plays, but also on utilizing the talents of our geosciences team to identify new opportunities in the Mid-Continent that can lead to value creation for our shareholders.”
Drilling activity on the new lease acreage is expected to commence in early 2015. Jones has proprietary access to 3-D seismic imaging over the newly acquired leasehold and has initiated reprocessing the data. As part of the lease option agreement, Jones retains the right to acquire up to an additional 63,000 net acres over a multi-year period under terms similar to the initial lease agreement.
About Jones Energy
Jones Energy, Inc. is an independent oil and natural gas company engaged in the development and acquisition of oil and natural gas properties in the Anadarko and Arkoma basins of Texas and Oklahoma. Additional information about Jones Energy may be found on the Company’s website at:www.jonesenergy.com.