VANCOUVER, April 9, 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 its initial development drilling and capital program for its recently acquired Kansas Properties, located in Douglas, Linn and Miami Counties.
Employing 4 active rigs, Jericho's initial shallow drilling program calls for 35 vertically producing wells and 35 water injection wells to be drilled, equipped and completed into known producing formations during 2Q-2014 on its EKan-1 and EKan-2 properties. In addition, there are approximately 20 potential workover well candidates on the combined properties.
The announced low-risk, shallow re-development and drilling program is a part of Jericho's opportunistic strategy to revitalize legacy producing oil fields through the implementation of proven, modern drilling completion and recovery techniques. Wells, on average, will be drilled in 2-3 days to depths between 600 and 800 vertical feet.
The properties, EKan-1 and EKan-2, will be developed using Jericho's 3-phase systematic asset development plan (See pg. 11 of Jericho's Investor Presentation). Newly drilled wells will follow Jericho's value creation strategy through 2.5 acre down spacing and 5-spot waterflood patterns.
Allen Wilson, CEO of Jericho Oil, stated, "We are extremely excited to begin our initial development drilling program on our recently acquired leases. The initial drilling program should provide Jericho with increased cash-flow from added production, as well as valuable drilling information to help the Company further evaluate potential step-out locations."
Jericho remains well capitalized following its recent $6.547 million private placement and this initial development drilling program is fully funded by existing cash on hand and cash-flow from existing production.
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 two oil producing lease packages comprising 2,688 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: CONTACTS: Tony Blancato, Director, Investor Relations, P: 604.343.2725; or Adam Rabiner, Director, Corporate Communications, P: 604.868.7881