VANCOUVER, Aug. 27, 2014 /CNW/ - Jericho Oil Corporation ("Jericho" or the "Company") (TSX-V: JCO, Frankfurt: JLM) today announced that following its Phase I Development Program ("Phase I"), daily production has increased by approximately 100 percent.
Gross production across the Company's oil producing acreage has averaged just under 100 barrels per day for the month of August thus far. Cumulative production for the month is expected to be approximately 3000 barrels as production continues to come on and the daily average continues to climb.
In addition to the production results contained in this news release, Jericho plans to provide further Phase I Development results as it brings the remaining production and injection wells online. The Company completed its Phase 1 Drilling Program at the end of June 2014, drilling and completing 62 new producing wells and 42 water injection wells.
Allen Wilson, CEO of Jericho, stated, "We are encouraged that after only six months since our first major acquisition in East Kansas, we have seen our production double as a result of our Phase I recompletion and drilling program in the region. The positive results from our Phase I program give us the confidence to continue to aggressively drill, develop, exploit and add to our now 3,600 acre Kansas land bank."
In the first quarter of 2014, Jericho acquired a 50% working interest in two oil lease packages located in Kansas, comprising 2,688 acres and production of 51 barrels of oil per day. The Company's Kansas land bank has since grown to nearly 3,600 acres with production averaging approximately 100 barrels of oil per day in August.
Jericho anticipates commencing its Phase II Development Program later this year.
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
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