VANCOUVER, BC and TULSA, OK, May 4, 2016 – Jericho Oil Corporation (“Jericho”) (TSX-V: JCO; OTC: JROOF), announces the results of its 2015 year-end reserves evaluation of its Kansas and Oklahoma properties as prepared by Cawley, Gillespie & Associates, Inc. (“CGA”), the Company’s independent reserves evaluator. The evaluation was prepared in accordance with the standards contained in the Canadian Oil and Gas Evaluation Handbook (“COGE Handbook”) and National Instrument 51-101.
Highlights of the Reserve Report (all dollar amounts in $USD):
Jericho deployed capital of $6.29mm – inclusive of acquisition costs – for the year ending December 31, 2015 and achieved significant reserve value growth (all dollar amounts are the Present Value of future cash flows discounted at 10% before tax derived fromYE2015 Independent Reserve Report using forecast pricing, $USD):
Proved plus Probable (2P) reserves total $17.1mm or 1.24mm barrels of oil equivalent
Proved (1P) reserves total $15.7mm or 1.07mm barrels of oil equivalent
Proved Developed (PDP + PDNP) reserves (the most ‘certain’ of reserves) totaled 966k barrels of oil equivalent, 367% increase y-o-y
Proved Developed reserves accounted for 90% of the Total Proved reserves
A critical measure of capital efficiency is the true cost of finding and developing our oil and gas reserves. As a result of the distressed marketplace, Jericho drove down the cost to find and develop our Proved Developed reserves by 69%. All-in finding and development costs went from $26.80 to $8.28 per barrel (Exploration Costs + Proved Property Acquisition Costs + Development Cost) / (Barrels derived from: extensions + discoveries + revisions + improved recovery + acquisitions). Jericho spent ~$6.29mm yielding an increase of 760k barrels of oil equivalent in 2015.
Allen Wilson, CEO of Jericho Oil, stated, “As a result of Jericho’s acquisition strategy throughout the prolonged oil price downturn the Company increased production and reserves, the main drivers of our Company’s intrinsic value. We increased Proved Developed reserves PV-10 by over 275% while decreasing our finding and development costs significantly. Our current asset base is producing strong field-level cash margins at current oil prices and have significant development optionality should oil prices recover.”
Below, please find the charts outlining the Present Value and Per Barrel Reserves summary of Jericho’s asset base:
About Jericho Oil Corporation
Jericho is a growth-oriented oil and gas company engaged in the acquisition, exploration, development and production of overlooked and undervalued oil properties in the Mid-Continent. For more information, please visit www.jerichooil.com.
Cautionary Note Regarding Forward-Looking Statements: This news release includes certain “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities laws. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual events and results to differ materially from Jericho’s expectations include risks related to the exploration stage of Jericho’s project; market fluctuations in prices for securities of exploration stage companies; and uncertainties about the availability of additional financing.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Director, Investor Relations
Director, Corporate Communications
The article is for informational purposes only and is neither a solicitation for the purchase of securities nor an offer of securities. Readers of the article are expressly cautioned to seek the advice of a registered investment advisor and other professional advisors, as applicable, regarding the appropriateness of investing in any securities or any investment strategies, including those discussed above. “Company X” is a high-risk venture stock and not suitable for most investors. Consult Jericho Oil Corporation’s SEDAR profile for important risk disclosures.
EnergyandGold has been paid 18K to cover Jericho Oil Corporation and so some information may be biased. EnergyandGold.com, EnergyandGold Publishing LTD, its writers and principals are not registered investment advisors and advice you to do your own due diligence with a licensed investment advisor prior to making any investment decisions.
This article contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). Certain information contained herein constitutes “forward-looking information” under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “expects”, “believes”, “aims to”, “plans to” or “intends to” or variations of such words and phrases or statements that certain actions, events or results “will” occur. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed by such forward-looking statements or forward-looking information, standard transaction risks; impact of the transaction on the parties; and risks relating to financings; regulatory approvals; foreign country operations and volatile share prices. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Actual results may differ materially from those currently anticipated in such statements. The views expressed in this publication and on the EnergyandGold website do not necessarily reflect the views of Energy and Gold Publishing LTD, publisher of EnergyandGold.com. Accordingly, readers should not place undue reliance on forward-looking statements and forward looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on www.SEDAR.com for important risk disclosures. It’s your money and your responsibility.