Company continues its growth, adds 2,050 acres in
newest acquisition
VANCOUVER, Jan. 23, 2015 /PRNewswire/ - 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