Jericho Oil Commences Drilling of Third STACK Well, Second in STACK’s Osage Formation
August 22 2018 - 7:00AM
After First Successful Osage Formation Test Well,
Jericho Continues Drilling Momentum
Jericho Oil Corporation (“Jericho”) (TSX-V: JCO; OTC PINK: JROOF)
announces that its Oklahoma STACK Joint Venture (“STACK JV”) will
commence this week with the drilling of its second Osage formation
well, the Trebuchet 21-23N-10W #1H, within its northern STACK
acreage position further delineating the nearly 16,000 net STACK
acres. This will be Jericho’s third well drilled in the STACK
Play in 2018 and second in the Osage formation.
This second Osage formation well follows the successful
completion of the Swordspear 23-10-15 1H well located within the
STACK JV’s Farm-in Acreage (announced January 2018) located on the
Major and Alfalfa County border, the northern boundary of the
Oklahoma STACK Play. The Swordspear well, after 45 days on an
electrical submersible pump (“ESP”), continues to produce at an
average rate over 400 oil-equivalent barrels (“BOE”) per day (55%
oil). Osage formation wells commonly take 60-100 days from
the start of first oil to reach peak initial production with the
Swordspear benefiting from a shallow initial decline
rate.
Critically, surrounding permitting and drilling activity
continues to pick up around the STACK JV’s position in Major County
from public and private operators. New assignments, per public
Oklahoma State records, for leases in the Northern STACK area have
increased 1,800% year over year from July 2017 to June 2018,
demonstrating the increased focus on pushing the northern boundary
of the STACK Play of Oklahoma. Following on this growing
interest in the northern STACK, Alta Mesa Resources (“AMR”; through
its Kingfisher Midstream subsidiary) recently announced plans to
significantly expand its midstream system to service Major County
and its increasing level of drilling activity with a new
high-pressure pipeline for oil, water and gas. The capital
commitment by Kingfisher Midstream affirms the positive well
results the STACK JV and others are experiencing in the
area.
The STACK JV owns a 47.5% working interest in the Swordspear and
a 48% working interest in the newly drilled Trebuchet.
Current ultimate recovery projections place the potential rate of
return at greater than 50% (assuming $65bbl / $3mcf and $5mm
Completed Well Cost). The northern STACK position was
accumulated at very attractive per acre rates and represents
hundreds of future drilling locations at compelling
economics.
Brian Williamson, CEO of Jericho Oil, stated, “We continue to be
incredibly encouraged with the early results of the Swordspear,
successfully testing the Osage, proving the extent, both
geographically and geologically, of the formation in the northern
STACK Play of Oklahoma. First mover advantage in the northern
STACK has allowed our Company to assemble thousands of high-quality
acres at very attractive per acre prices. We have quickly
moved to commence drilling on our second Osage well, hoping to
further delineate and prove the vast resource available in the
northern STACK,” adding, “we are excited to see significant
investments being made by midstream partners looking to capture the
growth in drilling activity in Major County.”
Jericho’s Director of Geology, Shane Matson, noted, “The
collaborative nature of many of the northern STACK participants is
only going to serve to produce better and more consistent results
across the play. The various hydrocarbon benches within the
norther STACK have been tested productively for years and are a
great match for current day horizontal development techniques.”
The Company’s 2018 development program, leveraging its recent
findings and successes, will focus on the continued delineation of
its acreage footprint for both the Meramec and Osage formations and
adding tuck in acquisitions that complement their STACK acreage
footprint.
About Jericho Oil Corporation Jericho Oil
(www.jerichooil.com) is focused on domestic, liquids-rich
unconventional resource plays, located primarily in the Anadarko
basin STACK Play of Oklahoma. Jericho’s primary business
objective is driving long-term shareholder value through the growth
of oil and gas production, cash flow and reserves. Jericho
has assembled an interest in 55,000 net acres across Oklahoma,
including an interest in ~16,000 net acres in the STACK Play.
Jericho’s current operations are focused on the oil-prone Meramec
and Osage formations in the STACK. The Jericho team applies
advanced engineering analyses and enhanced geological techniques to
under-developed resource areas. Based in Vancouver, British
Columbia, with operational headquarters in Tulsa, Oklahoma, Jericho
trades publicly on the TSX-Venture (JCO) and OTC (JROOF). Jericho
owns its net acre position in Oklahoma through, and participates in
the STACK JV through, one or more wholly owned
subsidiaries.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.
CONTACTS:
Tony Blancato, Director, Investor Relations918.986.7616
or
Adam Rabiner, Director, Corporate
Communications1.800.750.3520investorrelations@jerichooil.com
Jericho Oil (TSXV:JCO)
Historical Stock Chart
From Jun 2024 to Jul 2024
Jericho Oil (TSXV:JCO)
Historical Stock Chart
From Jul 2023 to Jul 2024