New Acreage Part of Prolific Oil Producing Channel
With Over 5 Million Barrels of Cumulative Production
VANCOUVER, June 24, 2014 /CNW/ - Jericho Oil Corporation
("Jericho" or the "Company") (TSX-V: JCO), today announced it has
added production and an additional 254 acres of oil & gas
leases in Miami County, Kansas
(the "Acquisition"). The new acreage, which runs contiguous to
Jericho's EKan-3 asset, is in a particular channel that has been a
prolific oil producing reservoir, with over 5 million barrels of
cumulative production.
The Acquisition has current production of 8 barrels of oil per
day, and brings Jericho's total Kansas lease acreage position to over 3,100
acres, of which Jericho owns 50% interest.
The Acquisition follows on the heels of Jericho's recently
completed Phase I drilling program. Preliminary drill
results, core analysis, and well logs on 160 acres adjacent to the
Acquisition, which were developed as part of that Phase I drilling
program, provided Jericho with the visibility and data necessary to
develop a subsurface map of the local geology and structural
trends, indicating the commercial viability and attractiveness of
the Acquisition.
Allen Wilson, CEO of Jericho Oil,
stated, "After positive initial drill results on our EKan-3 asset,
we are extremely excited to add contiguous acreage to our future
development program. This acquisition follows Jericho's
strategy to opportunistically add contiguous and proximate acreage
opportunities in line with our existing low-risk, shallow oil
development program, while increasing our high-quality drilling
inventory."
Development of the Acquisition will be included as part of
Jericho's Phase II development efforts later this year. Completed
wells will follow Jericho's value creation strategy using 2.5 acre
down spacing and 5-spot waterflood patterns. The development
plan for the Acquisition represents a continuation of Jericho's
strategy to revitalize legacy producing oil fields through the
implementation of proven, modern drilling completion and recovery
techniques.
The acquired acreage is in the Paola-Rantoul Oil Field with
development focused on a channel-type sand deposit, or "stringer,"
running through the leases. This particular channel has been
a prolific oil producing reservoir, with over 5 million barrels of
cumulative production, primarily from the Squirrel sandstone,
typically found at depths between 600 and 700 vertical
feet. Jericho will initially look to develop the
channel, interpreted to be one-quarter to one-half mile wide, and
will evaluate the potential for developing the over-bank and splay
deposits, as well.
About Jericho Oil Corporation
Jericho (TSX-V: JCO) 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% working interest in three lease packages
comprising over 3,100 acres. Jericho expects to continue its
extensive development program throughout the next 12 months and
will provide quarterly 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
