Jones Energy, Inc. announced initial production rates for the company's Merge wells. Highlights: BOMHOFF #2, JONE's first Meramec well, achieves top decile of Merge wells, reaching a peak rate of 650 Bo/d and 6,306 Mcf/d. BOMHOFF #1, JONE's first Woodford Generation 3 frac, shows 3x uplift from Generation 2 frac average, achieves peak rate of 278 Bo/d and 3,574 Mcf/d. Second Merge rig deployed as planned July 1, 2017. Arkoma divestiture is anticipated to close on August 1, 2017. 2017 Program Update: Eastern Anadarko (Merge) - Initial production results from the Company's Merge program include Jones Energy's first Meramec well, the BOMHOFF 20-12-7 2H, an Upper Meramec target drilled to a 4,428' lateral length, reached a peak rate of 650 Bo/d and 6,306 Mcf/d. This well has achieved the top decile of wells drilled to-date in the Merge. Jones Energy's first Woodford Generation 3 frac, the BOMHOFF 20-12-7 1H, was drilled to a 4,366' lateral length from the same pad, and achieved a peak rate of 278 Bo/d and 3,574 Mcf/d. The Company's second Meramec well, the GARRETT 4-11-6 1H, an Upper Meramec target was drilled to a 4,697' lateral length and has achieved rates to-date of 672 Bo/d and 1,580 Mcf/d with rates still increasing. The GARRETT has already exceeded oil rates of the best-in-class BOMHOFF #2 well. Jones Energy deployed its second rig in the Merge as planned on July 1st and continues to anticipate adding a third rig by year-end. The Company has drilled and completed its first six wells (four Woodford, two Meramec) which are on production, and has its seventh well (Meramec) undergoing completions. One of the rigs is currently drilling the two-well HARDESTY pad, while the other rig is drilling the company's first three-well pad, the ROSEWOOD, that includes two stacked Meramec wells and a Woodford well. The ROSEWOOD pad is located adjacent to the BOMHOFF pad. Western Anadarko (Cleveland): Jones Energy is running three rigs in the Western Anadarko, two which are focused on core Cleveland drilling and the third which is dedicated to long lateral drilling in Hutchinson County, TX. The company plans to maintain the existing rig schedule, but acknowledges that it has a high degree of flexibility in the 2017 program and could take swift action to reallocate or reduce capital, if warranted.

The company expects second quarter 2017 production of approximately 23.8 MBoe/d, or 2.17 MMBoe, which is approximately 10% above the top end of prior guidance of 20.7 – 21.7 MBoe/d for the quarter.

The company believes it remains on pace to achieve its full year 2017 production guidance of 20,700 to 23,000 Boe/d.