VANCOUVER, June 11, 2014 /CNW/ - Jericho Oil Corporation ("Jericho" or the "Company") (TSX-V: JCO) announces it has completed its Phase 1 drill program ahead of schedule drilling 35 additional wells (40% more than the scheduled 80 wells) with positive results from its initial drilling efforts.
The Company has now drilled 72 new, oil producing wells and 43 new, secondary recovery water injection wells into known producing formations between 600 and 800 vertical feet on its eastern Kansas properties, with a greater than 90% success rate. To-date, 30 oil producing wells and 12 secondary recovery water injection wells have been brought on-line. Initial production rates per producing well have averaged between 3.0 to 5.0 barrels of oil per day, exceeding Jericho's single well economic assumptions for the region. The Company intends to turn on the additional 32 oil producing wells in addition to continuing the initial stages of the secondary recovery waterflood process by turning on 30 secondary recovery water injection wells in the coming weeks.
The Company typically drills one water injection well in the middle of every four oil production wells. Water is injected into the oil producing zones in order to maintain optimal reservoir pressure and drive additional oil to producing wells. This secondary recovery process aims to accelerate and increase recovery of oil from the reservoir.
Jericho encountered reservoir thickness in its targeted zones of between 5 and 26 feet with average pay zones of 10 feet. This is in-line with our operating team's experience in the region. Additionally, two of the Phase 1-targeted leases on its EKan-2 asset experienced a second oil zone which had been undeveloped by previous operators. The Company intends to commingle and produce both zones together, as well as further target the secondary zone in its Phase 2 development program later this year. Preliminary core analysis on these leases exhibited promising average porosity of 23% and an abnormally high 52% oil saturation across targeted pay zones. Jericho continues to collect drilling data, core analyses and initial production results from its Phase 1 drilling program and looks to high-grade drilling inventory for Phase 2 development.
Allen Wilson, CEO of Jericho Oil, stated, "After positive initial drill results on our East Kansas platform, we are extremely excited to bring additional production on-line and to begin the process of secondary recovery waterflooding. These preliminary drill and initial production results mark another important milestone for Jericho, giving us confidence to continue onto our Phase 2 development program later this year, building production and our reserves base. "
Jericho's low-risk, shallow re-development and drilling program is a part of its opportunistic strategy to revitalize legacy oil fields through the implementation of proven, modern drilling completion and recovery techniques.
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