Jericho Oil (JCO.V) has reported a preliminary result from the first well drilled on its Blaine county acreage, in a joint venture with the private partner and private equity backed Staghorn Petroleum.
The first well was targeting the Meramec formation using a horizontal well with a length of 1 mile and immediately hit the sweet spot. The initial flow rate in the first 24 hours was approximately 957 barrels of oil-equivalent (68% oil) and the IP 30 is expected to be 770 boe/day (of which approximately 67% will be oil). As Jericho’s direct well interest is 12.46% (Jericho owns 26.5% of the STACK JV, which as a 47% well interest), this represents an attributable oil (equivalent) production of 96 barrels per day based on the IP 30.
More important than these few barrels of oil is the ‘proof of concept’. It’s great to see the first oil well is immediately successful and this bodes well for the future drill programs. Jericho’s share price is slowly making a move towards the C$1.20 level, and this will push the market capitalization to just over C$150M.