Jericho Continues Drilling Kansas Land Package Following Successful Phase I Results
VANCOUVER, Sept. 23, 2014 /CNW/ - Jericho Oil Corporation ("Jericho" or the "Company") (TSX-V: JCO, Frankfurt: JLM) announces that it will commence the first stage of its Phase II development drilling program for its Kansas land package.
Employing two active rigs, the first stage of Jericho's Phase II shallow drilling program calls for 25 vertically producing wells and 25 water injection wells to be drilled, equipped and completed into known producing formations during Q4-2014. In addition, there are approximately 10 to 15 potential work-over well candidates.
Following on the heels of its successful Phase I drilling program, Jericho added 729 acres of contiguous and proximate acreage along a historically prolific oil producing channel (See Press Releases: Land Acquisition 1 & Land Acquisition 2) which the Company is targeting to drill as part of its Phase II development program.
Allen Wilson, CEO of Jericho Oil, stated, "We are excited to build on our Phase I success, where we saw our production nearly double and the Company begin to achieve steady cash flow from a strong production base. Our operating team is looking forward to putting all the subsurface knowledge gained over the last five months to work in the continued build of our production base."
The acreage has been significantly de-risked by the Company's Phase I drilling efforts which saw Jericho drill and complete 105 producers and water injection wells. The Company gained valuable geological and geophysical data allowing for a more defined reservoir control and understanding of the targeted sand body. As a result of Jericho's Phase I drilling program, production has approximately doubled since the Company re-commenced trading on the TSX-V in March, 2014.
The Phase II drilling program will be developed using Jericho's 3-phase systematic asset development plan (See pg. 12 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.
The announced low-risk, shallow re-development and drilling program is a part of Jericho's 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 650 and 750 vertical feet.
About Jericho Oil Corporation
Jericho 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% interest in 27 leases comprised of nearly 3,600 acres. Jericho expects to continue its extensive development program throughout the next 12 months and will provide 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