Jericho Oil (JCO.V) has announced an agreement which allows it to acquire ‘just under’ a 1/3rd of a 9,400 acre land package in the Anadarko Basin STACK zone in Oklahoma. Jericho can acquire the third by investing up to US$9M in the acquisition and development expenses associated with the property.
The partners will have an 85% operating interest in the 9,400 acres which hosts up to six oil-bearing intervals. The company thinks the potential to define an oil resource is definitely there as Jericho confirms there are approximately 160 potential drill locations on site, and this could transition Jericho to become a pure exploration and development oil and gas play.
It’s definitely the right area to be active in as the STACK plays in the USA have received a lot of attention due to the superior economics of the oil wells and reservoirs. This means this transaction is also 100% consistent with Jericho’s mission statement to become a low-cost oil producer.
Meanwhile, Brian Williamson has been appointed as Jericho’s new CEO whilst Allen Wilson will remain president. We have met Williamson in the Jericho offices before and as President of Jericho Oklahoma, he has a hand-on approach on the day-to-day business of an oil company and will be the right person for the next phase in the company’s development due to his extensive background in private equity as well as his experience in Oklahoma.
The company also added two new members to its technical team as it appointed Jennifer McQueen as VP of Engineering and Ron Haverman as Senior Geologist, and they will both be instrumental to define the high-priority drill targets on the newly acquired STACK lands.