US-based oil and natural gas exploration company Jones Energy has signed agreements to sell several non-core assets in the Arkoma Basin to an undisclosed buyer for up to $67.5m, in a bid to reduce its debt.
The move comes after other non-core assets worth $2.5m were sold earlier this year.
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Jones Energy noted that it is marketing additional non-core assets on an ongoing basis.
The Arkoma agreement includes a sale price of $65m, in addition to a $2.5m supplementary payment based on improving natural gas prices.
Jones Energy founder, chairman and CEO Jonny Jones said: “We continue to execute on our 2017 goals, ramping activity in the Merge and selling non-core assets to reduce our debt and improve our balance sheet.
“The sale of our Arkoma basin asset and other properties is a significant catalyst in our deleveraging story.
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By GlobalData“The Arkoma represents just 6% of our projected 2017 revenues and we view the deal as an accretive transaction to the company.”
The transaction proceeds are expected to be used to repay outstanding borrowings under its revolving credit facility.
In the Arkoma basin, the company has 277 gross drilling locations and 45 net drilling locations on 12,383 leased acres, with a production of 3,574 barrels of oil equivalent a day in 2015.
The transaction is scheduled to be completed during the third quarter of this year and is subject to customary closing conditions.
Jones Energy is focused on the Anadarko basin of Texas and Oklahoma.
