Jericho Oil Corp. entered a joint venture (JV) agreement to acquire an interest in 9,400 net surface acres in the oil window of the Anadarko Basin Stack play in Oklahoma, the company said Aug. 22.
Under the agreement, Jericho will invest up to $9 million in acquisition and development capital to acquire a roughly one-third interest in the JV, marking the company's entry into the Stack play.
The JV acreage is a highly contiguous block in Blaine County, Okla., and is currently 100% HBP from legacy producing wellbores, according to Jericho's press release.
The properties also include 160 unrisked drilling locations and development targets in up to six intervals with multiple landing zones in the Chester, Meramec, Osage and Woodford formations.
On Aug. 23, Jericho said it intends to raise about C$10 million through a non-brokered private equity financing to primarily fund the acquisition.
Based in Vancouver, British Columbia, with a regional office in Tulsa, Okla., Jericho focuses on overlooked and undervalued oil properties in the Midcontinent region.
“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,” Ryan Breen, director of corporate development at Jericho, said in a statement. “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.”
Jericho's board of directors also appointed Brian Williamson, who currently oversees operations for its Oklahoma asset base, as the company's CEO. Additionally, the company added Jennifer McQueen as vice president of engineering, and Ron Haverman as senior geologist.
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