VANCOUVER, April 9, 2014 /CNW/ - Jericho Oil Corporation
("Jericho" or the "Company") (TSX-V: JCO), a growth-oriented oil
& gas company engaged in the acquisition, exploration,
development and production of overlooked and undervalued oil
properties in North America, today
announced its initial development drilling and capital program for
its recently acquired Kansas Properties, located in Douglas, Linn
and Miami Counties.
Employing 4 active rigs, Jericho's initial shallow drilling
program calls for 35 vertically producing wells and 35 water
injection wells to be drilled, equipped and completed into known
producing formations during 2Q-2014 on its EKan-1 and EKan-2
properties. In addition, there are approximately 20 potential
workover well candidates on the combined properties.
The announced low-risk, shallow re-development and drilling
program is a part of Jericho's opportunistic strategy to revitalize
legacy producing oil fields through the implementation of proven,
modern drilling completion and recovery techniques. Wells, on
average, will be drilled in 2-3 days to depths between 600 and 800
vertical feet.
The properties, EKan-1 and EKan-2, will be developed using
Jericho's 3-phase systematic asset development plan (See pg. 11 of
Jericho's Investor Presentation). Newly drilled wells will
follow Jericho's value creation strategy through 2.5 acre down
spacing and 5-spot waterflood patterns.
Allen Wilson, CEO of Jericho Oil,
stated, "We are extremely excited to begin our initial development
drilling program on our recently acquired leases. The initial
drilling program should provide Jericho with increased cash-flow
from added production, as well as valuable drilling information to
help the Company further evaluate potential step-out
locations."
Jericho remains well capitalized following its recent
$6.547 million private placement and
this initial development drilling program is fully funded by
existing cash on hand and cash-flow from existing production.
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 two oil producing lease packages
comprising 2,688 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