Jericho Oil Corporation (“Jericho”) (TSX VENTURE: JCO) (OTC PINK: JROOF) has entered into an agreement to acquire an interest in 9,400 net surface acres in the oil window of the Anadarko Basin STACK play in Oklahoma. This transaction provides Jericho the option to invest up to USD$9 million in acquisition and development capital to acquire just under one-third of the joint venture that will own the assets. The transaction is subject to customary closing conditions and is expected to close in third quarter 2017.
The 9,400 net surface acres (approx. 85% Operated) being acquired in the STACK play are a highly contiguous block located in Blaine County, Oklahoma. Situated in the normally pressured oil-window of the play, these properties include development targets in up to 6 intervals, including multiple landing zones in the Chester, Meramec, Osage and Woodford formations. The acreage is currently 100% held-by-production from legacy producing wellbores.
Joint Venture Acquisition Highlights:
- 8,600 net Mississippian acres in the normally pressured oil-window of the play
- Significant high-quality resource potential with unrisked inventory of more than 160 locations
- Implied acreage value of USD$2,300 / net Mississippian acre adjusting for proved developed producing (PDP) reserves
- Acreage position surrounded by substantial drilling and pooling activity targeting the Meramec and Osage formations from Chesapeake, Sandridge, Alta Mesa, Gastar as well as multiple private-equity backed operators
- Aligns with strategy to generate attractive returns at sub-$50 / bbl
“This attractive entry in the Anadarko Basin STACK play has captured a contiguous, operated position in the most economic portion of the STACK oil window, which has emerged as one of the top resources plays in North America,” said Ryan Breen, Director of Corporate Development. “Combined with our legacy assets assembled throughout the oil price downturn, Jericho has elevated its portfolio providing significant resource and drilling inventory to potentially support growth for years to come.”
Leadership & Technical Team Growth
Jericho’s Board of Directors has appointed Brian Williamson as Chief Executive Officer of Jericho Oil Corporation. Brian is currently the President of Jericho Oil (Oklahoma) Corp and over-sees operations for Jericho’s Oklahoma asset base. Mr. Williamson began his career at Arthur Andersen as part of its Tax and Business Advisory Services Practice, since then he has held senior management positions at The Harbor Group, a private equity backed energy investment, trading and risk management firm and managed the private equity platform for a New York based financial institution. Brian has been President of Jericho’s Oklahoma operations since 2016.
Jericho has also added Jennifer McQueen, as VP of Engineering, and Ron Haverman as Senior Geologist. Both appointments bolster the technical expertise and experience of Jericho’s engineering and geology team as Jericho commences exploration and development of its newly acquired STACK play acreage.
Prior to joining Jericho, Ms. McQueen and Mr. Haverman held various positions of increasing responsibility within large independent companies focusing on horizontal development in shale oil plays across the United States including Samson Resources, SM Energy and Ceja Corporation in addition to multiple private-equity backed ventures. Detailed bios for Ms. McQueen and Mr. Haverman are posted on the Jericho website.
“I am thrilled to hand over the reins to Brian as Jericho enters a new phase focused on its high-quality STACK play in addition to its legacy Oklahoma footprint built throughout the downturn,” said Allen Wilson, Jericho’s founding CEO. “As part of the transition, we are expanding the depth of our technical team in anticipation of the development of our assets and future growth. I look forward to continuing my work alongside our team.”
Jericho has closed the second tranche of its C$5.66 million private placement which was announced August 2, 2017. The second tranche raised proceeds of $943,396 and resulted in the issuance of 2,096,436 units at a price of $0.45 per unit. Each unit is comprised of one share and one-half warrant, each whole warrant is exercisable into one additional common share at $0.60 per share for a period of 36 months from closing. All securities issued on closing of the second tranche are subject to a four month hold period from the date of closing.
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.
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