- Jericho Continues to Successfully Execute Shallow Drill Program on Contiguous and Proximate Acreage
- Gross Production Averages over 100 BOPD during Quarter
VANCOUVER, Dec. 9, 2014 /CNW/ - Jericho Oil Corporation ("Jericho" or the "Company") (TSX-V: JCO, OTCQX: JROOF) today announced that its Phase II Development Program in Eastern Kansas is ahead of schedule, with the Company drilling 77 wells to date, 50% more than the originally scheduled drill program for Q4-2014.
On Sept. 23, 2014, Jericho announced the launch of its Phase II program, the first stage of which called for 50 producer and injector wells to be drilled and completed during Q4-2014. The targeted acreage had been significantly de-risked by the Company's Phase I drilling efforts, which made it possible for Jericho to gain valuable geological and geophysical data allowing for a more defined reservoir control and understanding of the sand bodies.
As part of Phase II, the Company has now drilled 56 new, oil producing wells and 21 new, secondary recovery injection wells into known producing formations between 400 and 700 vertical feet, with an approximately 90% success rate. Jericho encountered above average reservoir thickness compared to previous drill results in its targeted zones with average net pay zones of approximately 15 feet with good shows of oil saturation. To date, 13 oil producing wells and 10 secondary recovery water injection wells from the recent drilling have been brought on-line. Initial production rates exceeded Jericho's single well economic assumptions for the region, averaging between 3.0 to 5.0 barrels of oil per day.
Allen Wilson, CEO of Jericho, stated, "Our operations team has once again exceeded our expectations and we can look forward to strengthened cash flow and production from our Phase II efforts. At current oil prices, our netbacks sit at $25 to $30 per barrel. Accordingly, we plan to continue our extensive development program in Q1-2015."
Gross oil production for the fourth quarter continues to average above 100 barrels of oil per day, more than doubling production since Jericho re-listed its shares in March 2014. The Company expects its remaining drill results to produce strong production growth to finish out the year.
Jericho is debt free and remains well-capitalized following its recent $4.23 million equity financing.
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. The Company has acquired a 50% interest in 29 leases comprised of nearly 3,750 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