Jericho Oil Extends Revolving Credit Facility Maturity and Reaffirms Borrowing Base and Announces Intention to Conduct Norma...
August 28 2018 - 11:52AM
Jericho Oil Corporation (TSX-V:JCO) (OTC PINK:JROOF)
("
Jericho" or the "
Company")
announces that the lender under its Senior Secured Revolving Credit
Facility (the “
Facility”) has amended and extended
the maturity date of the Facility to July 29, 2020. In addition,
the borrowing base was reaffirmed at USD$7,500,000. The borrowing
base is subject to semi-annual re-determinations, with the next
occurring in October 2018.
“We are pleased with the support of our lending
bank which reflects the high quality and growth of our asset base,”
said Brian Williamson, CEO of Jericho Oil. “We continue to
reap the benefits of our asset accumulation over the last two years
as the rise in oil prices has bolstered our cash flow generation
and underlying value to shareholders.”
The Company also announces that it intends to
file with the TSX Venture Exchange (the
"Exchange") its Notice of Intention to conduct a
normal course issuer bid (the "NCIB") commencing
September 10, 2018. The NCIB will commence only on acceptance and
approval by the
Exchange.
The Company believes that from time to time the market price of its
common shares ("Shares") may not reflect their
underlying or intrinsic value and that, at such times, the purchase
of Shares for cancellation will increase the proportionate interest
of, and be advantageous to, all remaining shareholders.
As of the date hereof, there are 127,994,616
Shares issued and outstanding. Jericho is seeking approval for the
potential purchase of up to 500,000 Shares under the NCIB,
representing approximately 0.4% of the issued and outstanding
Shares.
Purchases will be made on the open market
through the facilities of the Exchange. PI Financial Corp. will
conduct the NCIB on behalf of Jericho. The price which the Company
will pay for any Shares purchased by it will be the prevailing
market price of such Shares on the Exchange at the time of such
purchase.
The NCIB, if approved, will terminate on the
earlier of: (i) one year from commencement; or (ii) when permitted
purchases thereunder are completed. Jericho may otherwise
elect to terminate the NCIB at any time.
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. These statements typically use words such as expect, believe,
estimate, project, anticipate, plan, may, should, could and would,
or the negative of these terms, variations thereof or similar
terminology. Forward-looking statements in this news release
include statements with respect to the extension of the Facility
and the benefits to be derived therefrom as well as Jericho's
purchase of Shares for cancellation increasing the proportionate
interest of, and be advantageous to, all remaining
shareholders. 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.
CONTACT:
Adam Rabiner, Director, Investor
Relations1.800.750.3520investorrelations@jerichooil.com
or
Tony Blancato, Director, Business Development
& Marketing 918.986.7616
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