Company continues its growth, adds 2,050 acres in newest acquisition
VANCOUVER, Jan. 23, 2015 /CNW/ - Jericho Oil Corporation ("Jericho" or the "Company") (TSX-V: JCO, OTCQX: JROOF), a growth-oriented oil company engaged in the acquisition, exploration, development and production of overlooked and undervalued oil properties in North America, announced it has signed a letter of intent to acquire a 50% working interest in 2,050 acres in northeastern Oklahoma. Upon closing, Jericho will begin the build-out of its second platform, focused on developing and optimizing legacy productive basins. The acquisition will bring Jericho's total acreage position to over 5,800 acres.
Allen Wilson, CEO of Jericho Oil, stated, "The market's recent turbulence has provided us an opportunity to focus our efforts on acquiring assets with good, long-term development potential at favorable pricing. We are excited about starting our second platform and look forward to diligencing more opportunities in Oklahoma. With a strong cash position and no company debt, it is our intention to continue down this path to patiently evaluate leases as they present themselves."
The Acquisition currently has both oil and gas production of approximately 7 barrels of oil equivalent per day (boepd).
Oklahoma is a natural extension of the Company's strategy to acquire shallow, vertical, long-lived, stripper oil wells within historically producing, mature oil and gas fields which have been either neglected or abandoned. The Cherokee basin, a 15-county region where the leases are located, runs from southeast Kansas down through northeast Oklahoma and bears the same shallow (400 – 900 feet) geological formations as Jericho currently operates within Kansas. The basin is a mature producing area with respect to conventional oil producing reservoirs such as the Bartlesville and other Pennsylvanian age sandstones, which were initially discovered and developed beginning in the early 1900's. The region is also known for its extensive blanket-like deposit of Coal Bed Methane ("CBM") seams. Jericho has targeted Oklahoma as a growth platform as it ranks second in terms of the Company's addressable market with regards to the amount of stripper oil wells and it's historically, highly productive secondary recovery application (See page 8 of Jericho's Corporate Presentation). Moreover, Oklahoma ranks fifth in crude oil production and fourth in natural gas production and continues to be an industry friendly state to operate within.
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 nearly 5,800 acres. Jericho will provide updates as their 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