Jonah Energy Closes on Acquisition in New Mexico’s Permian Basin

Acquisition is a large step in the company’s growth plan focused on assets with significant cashflow

DENVER, Jan. 6, 2025 – Jonah Energy LLC ("Jonah"), a substantial and growing private operator in the U.S., has successfully closed on the acquisition of Tap Rock Resources, LLC (“Tap Rock”), which owns assets in the Delaware Basin of the Permian Basin in New Mexico. Tap Rock is a portfolio company of an investment fund sponsored by NGP Energy Capital Management, L.L.C.

The transaction will fundamentally transform Jonah into a stronger, more balanced and sustainable enterprise. The new assets in the heart of New Mexico’s Delaware Basin join the existing assets in Wyoming’s Jonah and Pinedale fields of the Green River Basin.

The acquisition consists of a consolidated position of approximately 3,800 net acres, with the operated position entirely on state leases in Lea County, New Mexico. It includes 169 operated wells and 41 non-operated wells producing primarily from the Avalon, Bone Spring and Wolfcamp formations. First quarter 2025 average estimated production is approximately 52 MBoe/d, of which 30% is oil and 58% is liquids.

Jonah funded the acquisition through an asset-backed securitization and cash on hand. The asset-backed securitization is the fourth issuance by Jonah and the first in conjunction with an acquisition.

“We are incredibly proud to be operating in New Mexico and entering the Delaware Basin. New Mexico is a national leader in energy and natural resource management and has set a high bar for operators. We look forward to meeting and exceeding that bar.” said Brian Reger, President and COO of Jonah Energy. “This acquisition effectively doubles the size of our production, diversifies our asset base and positions us for further growth. I am excited for the future of the company as we integrate these assets and pursue additional acquisitions and development to achieve our growth plans.”

In addition, Jonah aims to maintain their leading role in producing oil and gas responsibly and sustainably.

In October of 2024 The Interstate Oil and Gas Compact Commission (IOGCC) honored Jonah Energy with its “Chair’s Stewardship Award” for going far beyond the basic mandates of law and regulation to protect and enhance our nation’s natural resources. The award represents IOGCC’s highest honor for exemplary efforts by the oil and natural gas industry in environmental stewardship.

In November of 2020 Jonah Energy became the first US based operator to sign onto the United Nations' Oil and Gas Methane Partnership 2.0 (OGMP 2.0), the only comprehensive, methane measurement-based framework specifically designed for the global oil and gas industry. In November of 2024 Jonah Energy was recognized as one of a handful of companies worldwide to achieve Level 5 gold standard reporting, the highest certification in OGMP 2.0.

About Jonah Energy LLC

Jonah Energy is an oil and gas exploration and development company headquartered in Denver, Colorado and operating in Green River Basin of Wyoming and Permian Basin in New Mexico. The company is one of the largest privately held natural gas producers in the US and focuses on producing oil & natural gas in an environmentally responsible manner.

MEDIA CONTACT:
Paul Ulrich, Jonah Energy
Paul.Ulrich@JonahEnergy.com
Cell: (303) 330-6346