- Jericho Continues to
Successfully Execute Shallow Drill Program on Contiguous and
Proximate Acreage
- Gross Production
Averages over 100 BOPD during Quarter
VANCOUVER, Dec. 9, 2014 /CNW/ - Jericho Oil Corporation
("Jericho" or the "Company") (TSX-V: JCO, OTCQX: JROOF) today
announced that its Phase II Development Program in Eastern Kansas is ahead of schedule, with the
Company drilling 77 wells to date, 50% more than the originally
scheduled drill program for Q4-2014.
On Sept. 23, 2014, Jericho
announced the launch of its Phase II program, the first stage of
which called for 50 producer and injector wells to be drilled and
completed during Q4-2014. The targeted acreage had been
significantly de-risked by the Company's Phase I drilling efforts,
which made it possible for Jericho to gain valuable geological and
geophysical data allowing for a more defined reservoir control and
understanding of the sand bodies.
As part of Phase II, the Company has now drilled 56 new, oil
producing wells and 21 new, secondary recovery injection wells into
known producing formations between 400 and 700 vertical feet, with
an approximately 90% success rate. Jericho encountered above
average reservoir thickness compared to previous drill results in
its targeted zones with average net pay zones of approximately 15
feet with good shows of oil saturation. To date, 13 oil producing
wells and 10 secondary recovery water injection wells from the
recent drilling have been brought on-line. Initial production
rates exceeded Jericho's single well economic assumptions for the
region, averaging between 3.0 to 5.0 barrels of oil per
day.
Allen Wilson, CEO of Jericho,
stated, "Our operations team has once again exceeded our
expectations and we can look forward to strengthened cash flow and
production from our Phase II efforts. At current oil prices, our
netbacks sit at $25 to $30 per
barrel. Accordingly, we plan to continue our extensive development
program in Q1-2015."
Gross oil production for the fourth quarter continues to average
above 100 barrels of oil per day, more than doubling production
since Jericho re-listed its shares in March
2014. The Company expects its remaining drill results to
produce strong production growth to finish out the year.
Jericho is debt free and remains well-capitalized following its
recent $4.23 million equity
financing.
About Jericho Oil Corporation
Jericho 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. The Company has acquired a 50%
interest in 29 leases comprised of nearly 3,750 acres. Jericho
expects to continue its extensive development program throughout
the next 12 months and will provide 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