Jericho Oil Announces Entry into Anadarko Basin STACK Play


Oil and Gas - Aug 22, 2017

Jericho Oil Corporation has entered into an agreement to acquire an interest in 9,400 net surface acres in the oil window of the Anadarko Basin STACK play in Oklahoma. This transaction provides Jericho the option to invest up to USD$9 million in acquisition and development capital to acquire just under one-third of the joint venture that will own the assets. The transaction is subject to customary closing conditions and is expected to close in third quarter 2017.

The 9,400 net surface acres (approx. 85% Operated) being acquired in the STACK play are a highly contiguous block located in Blaine County, Oklahoma. Situated in the normally pressured oil-window of the play, these properties include development targets in up to 6 intervals, including multiple landing zones in the Chester, Meramec, Osage and Woodford formations. The acreage is currently 100% held-by-production from legacy producing wellbores.


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Joint Venture Acquisition Highlights:

  • 8,600 net Mississippian acres in the normally pressured oil-window of the play
  • Significant high-quality resource potential with unrisked inventory of more than 160 locations
  • Implied acreage value of USD$2,300 / net Mississippian acre adjusting for proved developed producing (PDP) reserves
  • Acreage position surrounded by substantial drilling and pooling activity targeting the Meramec and Osage formations from Chesapeake, Sandridge, Alta Mesa, Gastar as well as multiple private-equity backed operators
  • Aligns with strategy to generate attractive returns at sub-$50 / bbl

"This attractive entry in the Anadarko Basin STACK play has captured a contiguous, operated position in the most economic portion of the STACK oil window, which has emerged as one of the top resources plays in North America," said Ryan Breen, Director of Corporate Development. "Combined with our legacy assets assembled throughout the oil price downturn, Jericho has elevated its portfolio providing significant resource and drilling inventory to potentially support growth for years to come."

Source : Jericho Oil Corporation

Published on Global Energy World: Aug 22, 2017

 

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