Jericho Oil Corporation (“Jericho”) (TSX-V:JCO) (OTC PINK:JROOF) announces, with its Private Family Partner, that it has closed the acquisition of approximately 9,400 net surface acres in the oil window of the Anadarko Basin STACK play in Oklahoma. Concurrently, the Company announces that it has closed an oversubscribed non-brokered private placement of C$10,576,107 (the “Offering”) consisting of 22,033,567 units (“Units”) at a price of C$0.48 per Unit. Each Unit is comprised of one common share (a “Share”) and one-half warrant (a “Warrant”) with each full Warrant being exercisable into one additional Share at a price of C$0.60 per Share for a period of 36 months from closing.
Jericho has exercised US$3 Million of its option in the STACK Joint Venture (“STACK JV”) with its Private Family Partner, and the Company will own approximately 31% interest in the STACK JV upon fully exercising its option for an additional US$6 Million. For additional details about Jericho’s STACK acquisition, please see the Company’s STACK Entry Presentation.
Brian Williamson, CEO of Jericho, stated, “We are extremely pleased to have completed this transformative transaction, which affords our Company the option to invest in one of the top resource plays in North America. Jericho’s operated, beach-head position in Blaine County came at a noteworthy per acre discount to recently completed proximate STACK transactions as well as publicly traded pure-play STACK players. Our team’s extensive background working on the Mississippian-aged Meramec and Osage formations gives me great confidence in our ability to execute on our strategic growth initiatives moving forward.”
No finders’ fees or commissions were paid in connection with the Offering. Final TSX Venture Exchange approval has been received for the Offering. All securities issued pursuant to the Offering are subject to a four month and one day hold period from the date of issuance.
About Jericho Oil Corporation
Jericho is a growth-oriented oil and gas company engaged in the acquisition, exploration, development and production of overlooked and undervalued oil properties in the Mid-Continent. 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.
Director, Investor Relations
Director, Corporate Communications
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