AUSTIN, Texas, Feb. 05, 2018 (GLOBE NEWSWIRE) -- Jones Energy, Inc. (NYSE:JONE)  provided its 2017 year-end reserves, an operations update and initial 2018 guidance.

Highlights

• Bone 2H Meramec well achieves peak IP24 rate of 1,878 Boe/d (54% oil, 3-stream). Peak oil rate of 1,015 Bo/d or 232 Bbls per 1,000’ of lateral, sets new Company record in the Merge.
• Fourth quarter 2017 average production of approximately 21,200 Boe/d, 6.5% above the midpoint of guidance. Full year 2017 average production of approximately 21,300 Boe/d, beating the high end of the guidance.
• Proved oil reserves increased 23% to 29 MMBbls from year-end 2016.
• Year-end 2017 proved reserves standardized measure value of $567 million increased 48% from year-end 2016. Corresponding Non-GAAP SEC PV-10¹ value of $627 million increased 56% from year-end 2016, based on SEC prices².
• Initial 2018 capital budget of $150 million.
• 2018 full-year production guidance of 19,300 to 21,500 Boe/d; first quarter 2018 production guidance of 19,200 to 21,400 Boe/d.

Jones Energy Founder, Chairman, and CEO, Jonny Jones stated, “I am proud to announce our year-end 2017 reserves, which highlight just how large a contribution the Merge has already made to our Company. Reserves and PV-10 value grew significantly in 2017 from the Merge, and we are very excited with the results we are seeing from this new asset.” Mr. Jones further stated, “In fact, today we are announcing initial production rates from our two-well Bone pad, which are exceeding type curves and setting new records for the Company. We continue to see strong early-time production from our existing Merge wells and I look forward to providing additional details on our operations with our fourth quarter and full year 2017 earnings. Finally, I’d like to announce our initial 2018 capital budget of $150 million, which is focused on Merge development. This budget will allow us to hold-by-production (“HBP”) all of our majority-owned sections in the Merge and, with a moderate cash flow outspend, grow production over 2017³.”

2017 Year-End Proved Reserves

Jones Energy’s year-end 2017 proved reserves based on SEC pricing were 104.8 MMBoe, of which 59% were classified as proved developed reserves. Total proved oil reserves at year-end 2017 were 29.0 MMBbls, an increase of 23% from year end 2016 reserves of 23.6 MMBbls. The SEC standardized measure value of the Company’s proved reserves was $567 million. Its PV-10 value of proved reserves (a non-GAAP measure) for year-end 2017 was $627 million.

Operations Update

Recent Merge Well Results

Jones Energy is announcing initial production rates for its two-well Bone pad, located in Southern Canadian County, OK consisting of one Meramec and one Woodford well. The Bone 1H, a Woodford well drilled to a 4,322’ lateral length, achieved a peak IP24 rate of 755 Boe/d (63% oil on a 3-stream basis). The Bone 2H, a Meramec well drilled to a 4,375’ lateral length, achieved a peak IP24 rate of 1,878 Boe/d (54% oil on a 3-stream basis). Both Bone wells are exhibiting high oil cuts in early time data, confirming the up-dip oil fairway across the Merge. In fact, the Bone 2H Meramec well had a peak oil rate of 1,015 Bo/d, which is 232 Bbls per 1,000’ of lateral, setting new Company record for oil rate per 1,000’ of lateral in the Merge.

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 basin of Oklahoma and Texas. Additional information about Jones Energy may be found on the Company’s website at: www.jonesenergy.com.