New Acreage Part of Prolific Oil Producing Channel With Over 5 Million Barrels of Cumulative Production
VANCOUVER, June 24, 2014 /CNW/ - Jericho Oil Corporation ("Jericho" or the "Company") (TSX-V: JCO), today announced it has added production and an additional 254 acres of oil & gas leases in Miami County, Kansas (the "Acquisition"). The new acreage, which runs contiguous to Jericho's EKan-3 asset, is in a particular channel that has been a prolific oil producing reservoir, with over 5 million barrels of cumulative production.
The Acquisition has current production of 8 barrels of oil per day, and brings Jericho's total Kansas lease acreage position to over 3,100 acres, of which Jericho owns 50% interest.
The Acquisition follows on the heels of Jericho's recently completed Phase I drilling program. Preliminary drill results, core analysis, and well logs on 160 acres adjacent to the Acquisition, which were developed as part of that Phase I drilling program, provided Jericho with the visibility and data necessary to develop a subsurface map of the local geology and structural trends, indicating the commercial viability and attractiveness of the Acquisition.
Allen Wilson, CEO of Jericho Oil, stated, "After positive initial drill results on our EKan-3 asset, we are extremely excited to add contiguous acreage to our future development program. This acquisition follows Jericho's strategy to opportunistically add contiguous and proximate acreage opportunities in line with our existing low-risk, shallow oil development program, while increasing our high-quality drilling inventory."
Development of the Acquisition will be included as part of Jericho's Phase II development efforts later this year. Completed wells will follow Jericho's value creation strategy using 2.5 acre down spacing and 5-spot waterflood patterns. The development plan for the Acquisition represents a continuation of Jericho's strategy to revitalize legacy producing oil fields through the implementation of proven, modern drilling completion and recovery techniques.
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 (TSX-V: JCO) 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% working interest in three lease packages comprising over 3,100 acres. Jericho expects to continue its extensive development program throughout the next 12 months and will provide quarterly 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 Corporation
For further information: Tony Blancato, Director, Investor Relations, P: 604.343.2725 or Adam Rabiner, Director, Corporate Communications, P: 604.343.4534