Jones Energy Inc. (NYSE: JONE) will exit the Arkoma Basin after entering agreements to sell several noncore assets for up to $67.5 million—exceeding analyst expectations by roughly 35%.

Jones said the Arkoma deals consist of a $65 million cash payment and up to $2.5 million in a contingency payment based on improving natural gas prices. The company has also sold other noncore assets worth $2.5 million in 2017, bringing its total announced divestitures to $70 million so far this year.

Jones did not disclose any of the buyers of its Arkoma assets.

Richard Tullis, an analyst with Capital One Securities, said June 9 that Jones had been marketing the Arkoma and other noncore properties with the hope of generating about $75 million.

“We value these properties at about $50 million,” Tullis said, adding that production averaged about 3,000 barrels of oil equivalent per day, nearly all natural gas and NGL.

Tullis said he also expects Jones to continue to pursue potential acquisitions and that the company could explore a joint venture structure in the Merge as a means of injecting additional development capital.

In April, Jones publicly marketed 6,250 net acres in the Arkoma Woodford, where net production averaged 19 million cubic feet equivalent per day (MMcfe/d) from 152 wells, 78 operated. The company estimated proved developed producing reserves of 87 Bcfe.

While Jones remains active in the Cleveland Play—which accounted for 70% of first-quarter production—the company sees the Merge presenting the most near-term upside potential, Tullis said.

“The company has been actively drilling Merge wells since deploying its first rig in the play last December, and we expect peak 30-day rates to be provided on as many as five of Jones’ initial Merge wells by the second-quarter earnings release,” he said.

Jones intends to use net proceeds from the Arkoma deals to repay outstanding borrowings under its revolving credit facility. The company is continuing to actively market other noncore assets.

Jonny Jones, founder, chairman and CEO, said Jones Energy continues to meet its goals for the year, including a ramp up of activity in the Oklahoma Merge and noncore divestitures.

“The sale of our Arkoma Basin asset and other properties is a significant catalyst in our deleveraging story,” Jones said in a press release. “The Arkoma represents just 6% of our projected 2017 revenues and we view the deal as an accretive transaction to the company.”

The Arkoma transactions are expected to be completed during the third quarter of 2017. Detring Energy Advisors was Jones’ exclusive adviser for the sale.

Darren Barbee can be reached at dbarbee@hartenergy.com.