Jericho Oil Drills 50% More Wells Than Originally Scheduled With 90% Success Rate

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http://ymlp263.net/ztCXaA ——————————————————————————– December 9, 2014 Penny Stock Profile ….

Jericho Oil Corp.

(TSX-Venture:JCO) (OTCQX:JROOF) For complete profile, CLICK HERE: (http://www.allpennystocks.com/aps_ca/company_spotlights/archives/jco.asp).

“When Jericho acquired the (Kansas)property, production stood at 50 barrels of oil per day (BOPD). In June, a Phase 1 drilling program was completed featuring 62 producer wells and 42 injector wells. In September, production had more than doubled to 118 BOPD and a Phase 2 drill program was launched, with four rigs currently in the process of drilling at least 50 new wells (25 producers, 25 injectors). With that, Jericho forecasts that production should climb to at least 150 BOPD, potentially north of 160 BOPD early in the first quarter 2015.” Company Profile (http://www.allpennystocks.com/aps_ca/company_spotlights/archives/jco.asp) Quote & News (http://app.quotemedia.com/quotetools/clientForwardtargetURL=http://www.baystreet.ca/quotedata/partners/allpennystocks/quotes.asp&action=showDetailedQuote&symbol=JCO:CA) BREAKING NEWS RELEASE ON JERICHO OIL CORP.

Jericho Oil Provides Q4 Operational Update – 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 Jericho Oil Corporation (TSX-Venture: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.

View More: (http://finance.yahoo.com/news/jericho-oil-provides-q4-operational-210100114.html) TSX-Venture:JCO /OTCQX:JROOF PROFILE:

The November 27 decision of the 12-member Organization of the Petroleum Exporting Countries (OPEC)to keep its production ceiling at 30 million barrels per day sent crude prices in a tailspin to quickly extend a rout that had drained about 30 percent from oil prices since June. Considering that OPEC members have generally overshot the target since announced in December 2011 and produced an average of 30.1 million barrels per day through October this year, actually enforcing the 30-million-barrel-limit (which the cartel says it will do) would be a cut in and amongst itself, albeit a slight one. That aside, analyst warning bells went off, with pundits chiming in about how low crude prices could go and what it means to North American energy companies to keep drilling economically.

The headline of OPEC’s decision has chummed controversy about whether the move is to force a showdown between Gulf producers (namely Saudi Arabia who produces about 1/3 of OPEC crude) and the U.S., as Gulf members point their fingers at the shale revolution as the cause of the supply glut, or a shot at Russia, whose economy is heavily reliant on its oil production. Whether it’s the Saudis flexing their muscles or financial warfare with Russian President Vladimir Putin is somewhat moot at this point as it looks like the indecision is going to continue for some time going forward until the supply/demand imbalance works itself out. The persistent pressure on prices and the likely leveling between $60 and $70 a barrel will certainly will have an impact on drilling budgets and profits for energy plays. It may even cripple some companies that are now over-leveraged after taking on too much debt for exploration and/or those focused on areas where average price requirements are in excess of $75 per barrel.

To add a little color, Deutsche Bank estimates that 40%of shale production scheduled for 2015 in the States is uneconomical with oil under $80 a barrel. Citibank analysts are much more sanguine, saying oil would have to drop below $50 per barrel just to halt production growth. Lower oil prices are just part of a shakedown that weeds out weak players, presents opportunities for the strong ones and teaches the industry how to operate more efficiently. In that vein, the U.S.

likely is not going to slow production in the near-term; companies will just focus on low-cost, high-margin points of production when possible and continue production in other areas due to lease requirements and to maintain cash flow.

One of those areas of focus could be stripper wells, shallow wells, legacy wells or conventional wells, as they are sometimes called.

They’re also often call marginal wells, although marginal wells technically produce both oil and gas. These wells are generally defined as those producing less than 10 barrels of oil per day for a twelve-month period (some definitions take it to 15 barrels/day). By any metric that is not a large amount of oil daily, but it is a numbers game of total producing wells. These wells are more prevalent than one may realize, with more than 410,000 stripper wells in the U.S. (80% of all wells) producing more than 900,000 barrels of oil each day, or about 18% of total U.S. production. At $65 oil, that’s about $60 million each day in oil from stripper wells. Further, a 2010 Interstate Oil and Gas Compact Commission Study showed stripper wells are estimated to access reservoirs that still hold two-thirds of their potential value, which could be unlocked with modern drill technologies. That’s something to think about for future possibilities bootstrapped to existing wells.

Squeezing every drop of oil from aging, slow-producing wells seemed to be part of the rationale behind oilfield services giant Halliburton (NYSE:HAL) saying last month it will pay $34.6 billion to acquire Baker Hughes (NYSE:BHI). Baker Hughes has a strong presence in the artificial lift sector, employing technologies to force oil from the bottom of wells to improve production rates from older wells to maximize return on investment. According to research company Spears & Associates, the global market for artificial lift systems is forecast to rise from $14.8 billion this year to $26 billion by 2020 as producers look for more value from wells.

Getting value from stripper wells is exemplified by Vancouver-based Jericho Oil Corp. (TSX-Venture:JCO)(OTCQX:JROOF), a junior producer 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. Ideal projects for Jericho are historically producing, mature oil fields that have been neglected or abandoned. Currently, Jericho’s portfolio consists of a 50% interest in 29 leases comprised of more than 3,750 acres in eastern Kansas with Jericho’s working interest equaling 58,715 proved developed reserves.

Jericho targets producing zones at less than 1,000 feet in depth, including the Bartlesville, Cattleman, Peru and Squirrel Sandstones within the Cherokee geologic grouping. The company typically utilizes primary and secondary recovery techniques, particularly the tried-and-true waterflooding tactic, to develop new production and/or increase production and estimated ultimate recoveries.

Whereas the cost of a traditional horizontal well can between $6-$9 million, Jericho’s business model is centered on revitalizing stripper wells and using infill and step-out drilling to develop the surrounding area, partnering with local operating teams and slashing its costs for production wells to only $35,000 each. To pair a water injection well with a production well, the cost still only rises to $62,000. What this results in is a high netback from wells that can slowly and steadily produce oil for 15-20 years at an all-in cost of less than $40 per barrel with an IRR (internal rate of return) in the 50%+ range.

Jericho is executing quickly on its plan following a$6.55 million private placement (shares priced at $0.30)and acquiring 2,600 acres of the Kansas holdings in February and commencing trading at $0.34 on the TSX-Venture in March. The additional contiguous acreage was acquired in April, August and October.

When Jericho acquired the property, production stood at 50 barrels of oil per day (BOPD). In June, a Phase 1 drilling program was completed featuring 62 producer wells and 42 injector wells. In September, production had more than doubled to 118 BOPD and a Phase 2 drill program was launched, with four rigs currently in the process of drilling at least 50 new wells (25 producers, 25 injectors). With that, Jericho forecasts that production should climb to at least 150 BOPD, potentially north of 160 BOPD early in the first quarter 2015.

Even on the low end, that’s more than 4,500 barrels of oil per month. Investors may also get a pleasant surprise when the effects of waterflooding kicks in, which usually takes 18-24 months to make an impact as brackish water slowly builds pressure and squeezes out additional oil. Production likely will see an upswing at that time.

Still, Jericho will have only drilled a fraction (about 15%) of its Kansas turf and it’s well capitalized to keep moving forward thanks to not only revenue from production, but also another private placement opened and completed in October. Jericho didn’t have to go outside looking for cash, its existing stakeholders showed their belief in the company’s operations and management, investing $4.23 million for shares at $0.50(up from $0.30 seven months earlier). To make matters better, Jericho’s non-brokered raise means the company didn’t have to pay any commissions or finder’s fees.

All the while raising the capital, Jericho has kept its share structure in order. The company has 45.52 million shares outstanding (and 15.4 million warrants), equating to a market capitalization of only $22.8 million for Canadian shares at $0.50 (and $18.2 million for US-listed stocks trading at $0.40).

Jericho’s savvy in oil production and the fundraising in the product of a lean, but multi-faceted management team. CEO Allen Wilson has 20 years of success in the capital markets and corporate development, working primarily with micro-cap companies at all stages of growth. In addition to his position at Jericho Oil, Mr. Wilson serves as a director at fellow oil explorer Newcastle Energy Corp.

(TSX-Venture:NGY) and privately-owned mining company Shasta Gold Corp.

CFO Robin Peterson has current Canadian public company reporting experience with U.S. oil operations and brings extensive financial, compliance and cost management expertise to Jericho. Mr. Peterson also serves as a director of Newcastle Energy. Director Stephen Kenwood, P.Geo., currently serves as a geological and management consultant to public and private companies and is a member of the Association of Professional Engineers and Geoscientists of British Columbia. Mr.

Kenwood has extensive experience domestically and internationally in mineral exploration, including working at Cominco (now Teck (NYSE:TCK)) and his current position as President at Majestic Gold and a director of a number of TSX listed companies.

Jericho perspicuously supplements this executive team with an oil and gas consultant with successful development record in Jericho’s targeted basins and a dedicated operator with 15 years of local operating experience, drilling more than 750 wells and managing more than 500 BOPD in production.

The bottom line with falling oil prices is that where there is fear; there is opportunity. Sure Jericho – and every other oil company – would prefer to sell their oil at $100 per barrel or more, but they have the low-risk, scalable business model to sustain lower prices and still generate profits of at least $25 per barrel even at $65 oil.

Moreover, the precipitous drop in oil prices creates potential acquisition opportunities that may not be present under different conditions, so the decline is not always a bad thing. Jericho is well funded and has made it clear that they are investigating other domestic historically producing shallow well properties to strategically add new leases on favorable terms. When oil will rebound is anyone’s guess, but it eventually will, as it is too important to global economies. When it does, Jericho will be in an even stronger position. It is for these reasons that we at AllPennyStocks.com have decided to turn our latest corporate spotlight on Jericho Oil Corp.

(TSX-Venture:JCO) (OTCQX:JROOF) and encourage all of our members to promptly begin their due diligence and immediately add the company to their watchlist.

As always, more information on Jericho Oil Corp., (TSX-Venture:JCO) (OTCQX:JROOF) can be found by going to the full profile at AllPennyStocks.com or by clicking here: (http://www.allpennystocks.com/aps_ca/company_spotlights/archives/jco.asp).

INVESTMENT HIGHLIGHTS * Scalable, Profitable Business Model. Jericho Oil Corp. targets shallow, long-life conventional oil stripper wells for revitalization, workovers and stimulation. The producer wells can produce oil for 15-20 years at an all-in cost to Jericho of less than $40 per barrel, with an IRR(internal rate of return) in the 50%+ range.

* Large Position in Oil Producing Region. Jericho’s current portfolio consists of a 50%interest in 29 leases comprised of more than 3,750 acres in eastern Kansas with Jericho’s working interest equaling 58,715 proved developed reserves. More than 85% of the property has yet to be drilled by Jericho.

* Production Growing Exponentially. Since acquiring the property in March, production has climbed from 50 BOPD to 118 BOPD in September.

An ongoing Phase 2 drill program is anticipated to raise production to 150 BOPD or more early in 2015, equating to at least 4,500 barrels of oil per month.

* Well Capitalized & Debt Free. Jericho is generating revenue from its existing production and has strengthened its balance sheet through a private placement of $6.55 in February and another of $4.23 million in October. The second raise exclusively involved existing shareholders and didn’t require Jericho paying any finder’s fees or commissions. With the private placements, Jericho still only has 45.52 million shares outstanding and no debt.

OVERVIEW 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.

Corporate Information * Exchange: TSX-Venture * Market Cap: 20 Million * Outstanding Shares: 45.5 Million * Price: $0.44 * 52 Week Low / High:$0.34 / $0.79 * Information As Of December 9, 2014 Useful Profile Links * Corporate Information (http://www.allpennystocks.com/aps_ca/company_spotlights/archives/jco.asp) * Recent News & Press Releases (http://www.allpennystocks.com/aps_ca/company_spotlights/archives/jco.asp) * Management Team (http://www.allpennystocks.com/aps_ca/company_spotlights/archives/jco.asp) * Contact Information (http://www.allpennystocks.com/aps_ca/company_spotlights/archives/jco.asp) Forward Looking Statements This report includes forward-looking statements that reflect Jericho Oil Corp. current expectations about its future results, performance, prospects and opportunities. Jericho Oil Corp. has tried to identify these forward-looking statements by using words and phrases such as “may,” “will,” “expects,””anticipates,” “believes,” “intends,””estimates,” “plan,” “should,” “typical,””preliminary,” “we are confident” or similar expressions. These forward-looking statements are based on information currently available and are subject to a number of risks, uncertainties and other factors that could cause Jericho Oil Corp.`s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, without limitation, the Company`s growth expectations and ongoing funding requirements, and specifically, the Company`s growth prospects with scalable customers, and those outlined above. Other risks include the Company`s limited operating history, the Company`s history of operating losses, consumers` acceptance, the Company`s use of licensed technologies, risk of increased competition, the potential need for additional financing, the terms and conditions of any financing that is consummated, the limited trading market for the Company`s securities, the possible volatility of the Company`s stock price, the concentration of ownership, and the potential fluctuation in the Company`s operating results.

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