In a deal valued at more than US$136 million, Jones Energy has agreed to acquire acreage in the western Anadarko Basin. Our US Lower 48 upstream analysts look into the surrounding SCOOP/STACK acreage for implications of what may be ahead for Jones in coming months. Our Crude for Thought podcast takes a deeper look into how operators are navigating Mid-Continent deals.
Jones Energy has expanded its Mid-Continent footprint in a US$136.5 million deal to acquire 18,000 net acres in the SCOOP/STACK plays. Currently active in the Anadarko Basin with three horizontal rigs in the Cleveland play, the deal represents Jones' first entrance into the basin's premier SCOOP/STACK plays.
The new 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 US$7,600 per net acre — far less than core acreage, which has sold for as much as US$20,000 per net acre.
Despite few horizontal developments in the area, recent well results could be a harbinger of high returns. Citizen has brought three nearby wells online in the past year that delivered IP30 rates of up to 2,000 barrels of oil equivalent per day 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.
Read more: prevailing Permian, Canada's catch-up
You can purchase our full US Upstream Week In Brief on demand to read this week's top stories in the North America Upstream sector, including the continued rise of the Permian with PDC's billion-dollar entrance there; BHP's return to drilling in a low-activity Haynesville; Continental's Bakken divestiture; Anterro's water recycling facility in West Virginia; Canada's growing midstream deals; and our latest supply update and rig-count dashboard.
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