Jericho Oil Announces STACK Well Results Targeting Osage Formation
July 25 2018 - 8:00AM
Jericho Oil Corporation (“Jericho”) (TSX-V:JCO) (OTC PINK:JROOF)
announces that its Oklahoma STACK Joint Venture (“STACK JV”) has
brought online a successful test well of the Osage formation within
its northern STACK acreage position. After more than six
months of extensive geological and geophysical work, along with
methodical acreage accumulation, and a strategic Osage formation
test well, the Company is excited to further delineate and develop
the STACK JV’s nearly 16,000 net acre position in the northern
STACK.
The Swordspear 23-10-15 1H well in SEC 15 T23N R10W is 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, after
30-days on an electrical submersible pump (“ESP”), is producing at
an average rate of 400 oil-equivalent barrels (“BOE”) per day (61%
oil). Osage formation wells commonly take 60-100 days from
the start of first oil to reach peak initial production. As
such, we are highly encouraged due to elevated bottom hole pressure
on the producing wellbore relative to expectations, often a key
determinant for higher producing rates over time. The most
recent daily production reading is over 500 BOE per day.
The STACK JV owns a 47.5% working interest in the
Swordspear. 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.
Due to the Osage formation test well success, the STACK JV has
elected to participate in its second Osage formation well
(Trebuchet 21-23N-10W #1H) within its northern STACK footprint,
further delineating our acreage position. The well has been
spaced and pooled with a preliminary spud date in late
August. Critically, surrounding activity continues to pick up
just south of our position in Major County with XTO Energy (an
Exxon Mobil Corporation), having just filed to drill two extended
laterals targeting the same Osage formation prevalent through the
STACK JV position.
Brian Williamson, CEO of Jericho Oil, stated, “We are 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 acres at very
attractive per acre prices, and we look forward to continuing to
delineate and develop our asset base to drive production growth and
strong risk-adjusted returns for our shareholders,” adding, “we are
also excited to see large majors like Exxon begin to develop their
acreage position just south of our development wells.”
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 our 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 a 55,000 net acre position 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
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