Jericho Oil Corporation, a growth-oriented oil company engaged in the acquisition, exploration, development and production of overlooked and undervalued oil properties in North America, announced it has signed a letter of intent to acquire a 50% working interest in 2050 acres in northeastern Oklahoma. Upon closing, Jericho will begin the build-out of its second platform, focused on developing and optimising legacy productive basins. The acquisition will bring Jericho’s total acreage position to over 5800 acres.
Allen Wilson, CEO of Jericho Oil, stated, “The market’s recent turbulence has provided us an opportunity to focus our efforts on acquiring assets with good, long-term development potential at favourable pricing. We are excited about starting our second platform and look forward to diligencing more opportunities in Oklahoma. With a strong cash position and no company debt, it is our intention to continue down this path to patiently evaluate leases as they present themselves.”
The acquisition currently has both oil and gas production of approximately 7 boepd.
Oklahoma is a natural extension of the Company’s strategy to acquire shallow, vertical, long-lived, stripper oil wells within historically producing, mature oil and gas fields, which have been either neglected or abandoned. The Cherokee basin, a 15-county region where the leases are located, runs from southeast Kansas down through northeast Oklahoma and bears the same shallow (400 - 900 ft) geological formations as Jericho currently operates within Kansas. The basin is a mature producing area with respect to conventional oil producing reservoirs such as the Bartlesville and other Pennsylvanian age sandstones, which were initially discovered and developed beginning in the early 1900s. The region is also known for its extensive blanket-like deposit of coal bed methane (‘CBM’) seams. Jericho has targeted Oklahoma as a growth platform as it ranks second in terms of the Company’s addressable market with regards to the amount of stripper oil wells and it’s historically, highly productive secondary recovery application. Moreover, Oklahoma ranks fifth in crude oil production and fourth in natural gas production and continues to be an industry friendly state to operate within.
Adapted from a press release by David Bizley