Phase 1 Drilling Program of 70 Wells is Ahead of Schedule
VANCOUVER, May 14, 2014 /CNW/ - Jericho Oil Corporation ("Jericho" or the "Company") (TSX-V: JCO) today announced its Phase 1 drilling program of 70 wells (increased in April to include Jericho's recent EKan-3 acquisition) is ahead of schedule. The Company has now drilled over three-quarters of the planned wells on its recently acquired Eastern Kansas Properties.
In addition, Jericho is pleased to report its first set of production wells will be brought online this week. The Company intends to continue to turn on additional wells as it finishes up its Phase 1 development program later this quarter.
As announced on April 9, 2014, Jericho's Phase 1 initial drilling program called for 35 producing wells and 35 water injection wells to be drilled, equipped and completed into known producing formations during 2Q 2014 on its Eastern Kansas properties. To date, wells have been drilled on over half of the acquired leases. On average, wells were drilled to depths between 600 and 800 vertical feet, targeting a variety of Pennsylvanian aged sands including the Bartlesville, Cattlemen, Peru and Squirrel formations. Jericho's properties are being developed using a 3-phase systematic asset development plan (See pg. 11 of Jericho's Investor Presentation), with newly drilled wells following Jericho's value creation strategy of 2.5 acre spacing and 5-spot pattern waterflooding.
Allen Wilson, CEO of Jericho Oil, stated, "We are pleased with the progress of our Phase 1 development efforts and we look forward to completing our Phase 1 development later this quarter. Turning on our first new wells is an exciting milestone for Jericho, and to do so ahead of schedule allows us to accelerate Jericho's progression into Phase 2's full-field development program."
Jericho's low-risk shallow re-development and drilling program is a part of its opportunistic strategy to revitalize legacy producing oil fields through the implementation of proven, modern drilling completion and recovery techniques.
Jericho remains well-capitalized following its recent $6.547 million private placement and this initial development program is fully funded by existing cash on hand and cash-flow from production.
ON BEHALF OF THE BOARD
Allen Wilson, President, CEO and Director
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 2,800 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