Jagged Peak Energy has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). No pricing terms were given in the filing, but the offering is valued up to $100 million, although this number is normally just a place holder. The company intends to list its shares on the New York Stock Exchange under the symbol JAG.
The underwriters for the offering are Citigroup, Credit Suisse and JPMorgan.
This is a growth-oriented, independent oil and natural gas company focused on the acquisition and development of unconventional oil and associated liquids-rich natural gas reserves in the Southern Delaware Basin, a sub-basin of the Permian Basin of West Texas and one of the most prolific unconventional resource plays in North America.
Its acreage is located on large, contiguous blocks in the adjacent counties of Winkler, Ward, Reeves and Pecos, with significant original oil-in-place within multiple stacked hydrocarbon-bearing formations. Jagged Peak is focused on increasing stockholder value by growing production and reserves through the development of its multiyear inventory of 1,265 gross horizontal drilling locations with an average lateral length of 7,426 feet, expanding and improving the resource potential of its existing acreage position, and growing acreage position through acquisitions and leasing efforts.
The company detailed in its filing:
As of September 30, 2016, we held an average 89% working interest in approximately 68,121 gross (60,875 net) leased or acquired acres, and we operated approximately 98% of our acreage position. Both our production and our proved reserves consist of greater than 80% oil. Our acreage is exclusively located in the core oil window of the Southern Delaware Basin. We generally consider the core oil window of the Southern Delaware Basin to be the eastern and southern portion of the basin, which is characterized by high oil saturation and favorable over-pressured conditions.
Jagged Peak intends to use the net proceeds from this offering to repay its indebtedness, with the remainder going toward working capital and general corporate purposes.