VANCOUVER, April 23, 2014 /CNW/ - Jericho Oil Corporation ("Jericho" or the "Company") (TSX-V: JCO), a growth-oriented oil & gas company engaged in the acquisition, exploration, development and production of overlooked and undervalued oil properties in North America, today announced it has contracted a 50% interest for 160 additional development Acres in Miami County, Kansas. This acquisition, named EKan-3, brings Jericho's total Kansas acreage position to over 2,800 acres.
The EKan-3 acreage will be included as part of Jericho's initial development program and will follow Jericho's 3-phase systematic asset development plan. Completed wells will follow Jericho's value creation strategy using 2.5 acre down spacing and a 5-spot waterflood patterns.
The recently acquired acreage is in the Paola-Rantoul Oil Field with development focused on a channel or "Shoestring" running through the lease. This particular Shoestring is a prolific oil producing field with over 5 million barrels of cumulative production primarily from the Squirrel sandstone of the Cherokee Basin formation typically found at depths between 600 and 700 vertical feet. Jericho will look to develop the "shoestring" which is comprised of an oil channel, one-quarter to one-half mile wide, and will evaluate the potential for developing the over-bank and splay deposits.
This acquisition, located within 5 miles of Jericho's EKan-2 asset, is a continuation of Jericho's opportunistic strategy to revitalize legacy producing oil fields through the implementation of proven, modern drilling completion and recovery techniques.
Allen Wilson, CEO of Jericho Oil, stated, "We are extremely excited to add this additional acreage package to our development program. Jericho will add five additional wells to its previously announced initial development program for the newly acquired acreage. We look forward to evaluating additional step-out locations based on the results of these wells."
Jericho will continue to opportunistically add contiguous or proximate acreage opportunities in line with its existing low-risk, shallow oil development program.
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 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: 604.868.7881