3. Acquisitions and Divestitures

During the six months ended June 30, 2017 and the year ended December 31, 2016, the Company entered into several purchase and sale agreements, as described below.

Merge Acquisition

On September 22, 2016, JEH acquired oil and gas properties located in the Merge area of the STACK/SCOOP (the “Merge”) play in Central Oklahoma (the “Merge Acquisition”) from SCOOP Energy Company, LLC for cash consideration of $134.4 million, net of the final working capital settlement of $2.4 million received in the first quarter of 2017. The oil and gas properties acquired in the Merge Acquisition, on a closed and funded basis, principally consist of 16,975 undeveloped net acres in Canadian, Grady and McClain Counties, Oklahoma. This transaction has been accounted for as an asset acquisition. The Company used proceeds from our equity offerings to fund a portion of the purchase. See Note 11, “Stockholders’ and Mezzanine equity”.

Anadarko Acquisition

On August 25, 2016, JEH acquired producing and undeveloped oil and gas assets in the Western Anadarko basin (the “Anadarko Acquisition”) for final consideration of $25.9 million. This transaction was accounted for as a business combination. The Company allocated $32.3 million to “Oil and gas properties,” with $3.0 million allocated to “Unproved” properties, $17.0 million allocated to “Proved” properties, and $12.3 million allocated to “Wells and equipment and related facilities”, based on the respective fair values of the assets acquired. Additionally, the Company allocated $6.4 million to our ARO liability associated with those proved properties. As of June 30, 2017, the measurement-period has closed. The Anadarko Acquisition did not result in a significant impact to revenues or net income and as such, pro forma financial information is not included. The Company funded the Anadarko Acquisition with cash on hand.

The assets acquired in the Anadarko Acquisition included interests in 174 wells, 59% of which were operated by the company, and approximately 25,000 net acres in Lipscomb and Ochiltree Counties in the Texas Panhandle. As of the closing date, the acquired acreage was producing approximately 900 barrels of oil equivalent per day.

Arkoma Divestiture

On August 1, 2017, JEH closed its previously announced agreement to sell its Arkoma Basin properties (the “Arkoma Assets”) for a purchase price of $65.0 million, subject to customary adjustments (the “Arkoma Divestiture”). JEH may also receive up to $2.5 million in contingent payments based on natural gas prices. No amounts have been recorded related to this contingent payment as of June 30, 2017. The Company received a deposit of $4.9 million associated with the pending sale which has been included in Other current liabilities on the Company’s Consolidated Balance Sheet as of June 30, 2017. See Note 15, “Subsequent Events - Arkoma Divestiture”.

Assets held for sale

As of June 30, 2017, the Arkoma Assets and related liabilities (the “Held for sale assets”) were classified as held for sale due to the pending Arkoma Divestiture. Upon the classification change occurring on June 30, 2017, the Company ceased recording depletion on the Held for sale assets. Based on the Company’s anticipated sales price, the Company has recognized an impairment charge of $161.9 million at June 30, 2017 which has been included in Impairment of oil and gas properties on the Company’s Consolidated Statement of Operations.

The following table presents balance sheet data related to the Held for sale assets:


	June 30,
(in thousands of dollars)	2017
Assets:

Accounts receivable, net
Oil and gas sales	$	3,250
Joint interest owners		102
Other		14

Other current assets		4

Leasehold improvements		27
Other		68
Less: Accumulated depreciation and amortization		(10)
Other property, plant and equipment, net		85

Total current assets held for sale		3,455

Mineral interests in properties
Unproved		12,204
Proved		216,570
Wells and equipment and related facilities		179,925
Less: Accumulated depletion and impairment		(344,499)
Oil and gas properties, net		64,200

Total assets held for sale, net	$	67,655

Liabilities:

Trade accounts payable	$	379
Oil and gas sales payable,		6,015
Accrued liabilities		1,078

Total current liabilities related to assets held for sale		7,472

Asset retirement obligations		1,143

Total liabilities related to assets held for sale	$	8,615