Jericho Oil Acquires Additional Productive Acreage in Prolific Oil Producing Channel
Kansas Land Package Nears 3,600 Acres Following Acquisition
VANCOUVER, Aug. 20, 2014 /CNW/ - Jericho Oil Corporation ("Jericho" or the "Company") (TSX-V: JCO, Frankfurt: JLM) today announced it has added production and an additional 475 development acres in Miami County, Kansas. The new acreage, located within two miles of Jericho's existing EKan-3 leases and which runs along the same prolific oil producing channel, brings Jericho's total Kansas acreage position to nearly 3,600 acres.
The Acquisition has current production of approximately four barrels of oil per day and has been historically developed and produced since the 1970s. Development of the Acquisition will be included as part of Jericho's anticipated Phase II development efforts later this year.
The Acquisition follows Jericho's recent and successful Phase I drilling program and contiguous acreage acquisition in the same prolific oil producing channel on EKan-3. As reported in Jericho's news release dated August 14, 2014, current production on the initial 160 acres in the channel is 30 barrels of oil per day from 12 channel producer wells. Good core data and well logs on EKan-3's original 160 acres from its Phase I drilling spurred on Jericho's aggressive acquisition strategy in this play. Over the last four months, Jericho has acquired close to 900 acres in this trend.
Allen Wilson, CEO of Jericho Oil, stated, "After positive results on our initial EKan-3 acquisition, we have been and will continue to diligently pursue and acquire additional acreage along this prolific reservoir."
The acquired acreage is in the Paola-Rantoul Oil Field with development focused on a channel-type sand deposit, or "stringer," running through the leases. This particular channel has been a prolific oil producing reservoir, with over 5 million barrels of cumulative production, primarily from the Squirrel sandstone, typically found at depths between 600 and 700 vertical feet. Jericho will initially look to develop the channel, interpreted to be one-quarter to one-half mile wide, and will evaluate the potential for developing the over-bank and splay deposits, as well.
About Jericho Oil Corporation
Jericho is focused on growth through consistent, predictable and repeatable high margin conventional oil production by bringing new and proven technology to legacy, onshore basins in North America. Jericho has acquired a 50% interest in 27 leases comprised of nearly 3,600 acres. Jericho expects to continue its extensive development program throughout the next 12 months and will provide updates as the program progresses. For more information, please visit www.jerichooil.com.
Cautionary Note Regarding Forward-Looking Statements
This news release includes certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities laws. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual events and results to differ materially from Jericho's expectations include risks related to the exploration stage of Jericho's project; market fluctuations in prices for securities of exploration stage companies; and uncertainties about the availability of additional financing.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Jericho Oil CorporationFor further information: CONTACTS: Tony Blancato, Director, Investor Relations, P: 604.343.2725 or Adam Rabiner, Director, Corporate Communications, P: 604.868.7881