VANCOUVER, June 11, 2014 /CNW/ - Jericho Oil Corporation
("Jericho" or the "Company") (TSX-V: JCO) announces it has
completed its Phase 1 drill program ahead of schedule drilling 35
additional wells (40% more than the scheduled 80 wells) with
positive results from its initial drilling
efforts.
The Company has now drilled 72 new, oil producing wells and 43
new, secondary recovery water injection wells into known producing
formations between 600 and 800 vertical feet on its eastern
Kansas properties, with a greater
than 90% success rate. To-date, 30 oil producing wells and 12
secondary recovery water injection wells have been brought on-line.
Initial production rates per producing well have averaged
between 3.0 to 5.0 barrels of oil per day, exceeding Jericho's
single well economic assumptions for the region. The Company
intends to turn on the additional 32 oil producing wells in
addition to continuing the initial stages of the secondary recovery
waterflood process by turning on 30 secondary recovery water
injection wells in the coming weeks.
The Company typically drills one water injection well in the
middle of every four oil production wells. Water is injected
into the oil producing zones in order to maintain optimal reservoir
pressure and drive additional oil to producing wells. This
secondary recovery process aims to accelerate and increase recovery
of oil from the reservoir.
Jericho encountered reservoir thickness in its targeted zones of
between 5 and 26 feet with average pay zones of 10 feet. This is
in-line with our operating team's experience in the region.
Additionally, two of the Phase 1-targeted leases on its EKan-2
asset experienced a second oil zone which had been undeveloped by
previous operators. The Company intends to commingle and
produce both zones together, as well as further target the
secondary zone in its Phase 2 development program later this
year. Preliminary core analysis on these
leases exhibited promising average porosity of 23% and an
abnormally high 52% oil saturation across targeted pay zones.
Jericho continues to collect drilling data, core analyses and
initial production results from its Phase 1 drilling program and
looks to high-grade drilling inventory for Phase 2
development.
Allen Wilson, CEO of Jericho Oil,
stated, "After positive initial drill results on our East Kansas platform, we are extremely excited
to bring additional production on-line and to begin the process of
secondary recovery waterflooding. These preliminary drill and
initial production results mark another important milestone for
Jericho, giving us confidence to continue onto our Phase 2
development program later this year, building production and our
reserves base. "
Jericho's low-risk, shallow re-development and drilling program
is a part of its opportunistic strategy to revitalize legacy oil
fields through the implementation of proven, modern drilling
completion and recovery techniques.
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 2,800 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