Proceeds will be Used to Accelerate the Development of Jericho's Kansas Assets
VANCOUVER, Oct. 20, 2014 /CNW/ - Jericho Oil Corporation ("Jericho" or the "Company") (TSX-V: JCO, Frankfurt: JLM) today announced that it has closed its non-brokered private placement financing previously announced on October 9, 2014 by issuing 8,461,036 units (the "Units") at $0.50 per Unit for proceeds of $4,230,517 (the "Offering").
All subscribers of the Offering were existing shareholders of Jericho Oil. No finder's fees or commissions were paid in connection with the Offering.
Each unit is comprised of one common share and one half warrant (a "Warrant") with each whole Warrant being exercisable into one common share at $0.75 per share for two years from closing.
Allen Wilson, CEO of Jericho, stated, "We are pleased with the support our shareholders continue to show at this important and exciting stage in our development. This investment, in the midst of recent oil price volatility, is a shining endorsement of Jericho's focus on low-risk, high margin productive assets, and will allow us to significantly accelerate the development of our targeted legacy producing oil fields."
Following a successful Phase I drill program, which saw Jericho increase gross production by nearly 100% since March, 2014 acquisition, the new financing will be used primarily to advance the development of Company's oil leases in Eastern Kansas and may also be used to opportunistically acquire additional lease acreage. Jericho recently launched its Phase II development program. The first stage of Phase II calls for 25 vertically producing wells and 25 water injection wells to be drilled, equipped and completed into known producing formations during Q4-2014.
All shares issued pursuant to the Offering are subject to a four month hold period. Following the completion of this Offering, the Ryan D. Breen Trust now holds a 12.98% equity stake in Jericho on an undiluted basis.
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