Jericho Oil Completes $6.929 Million Financing and Closes Central Oklahoma Acquisitions
VANCOUVER, BC and TULSA, OK--(Marketwired - January 05, 2016) -
Jericho Oil Corporation ("Jericho") (TSX VENTURE: JCO) (OTC PINK: JROOF) announces that it has closed its non-brokered private placement (the "Offering") of 17,323,610 units (the "Units") at $0.40 per Unit for gross proceeds of $6.929 million.
Each Unit is comprised of one common share (a "Share") and one half warrant (a "Warrant"). Each whole Warrant is exercisable into one additional Share at $0.60 per Share for two years from closing. The Shares and Warrants are subject to a four month hold period from the date of closing. No finders' fees or commissions were paid in connection with the Offering.
Proceeds of the Offering were used to acquire producing wells and prospective acreage in Central Oklahoma, outlined by the Company in news releases on Oct. 19, 2015 and Nov. 23, 2015. The acquisitions, which closed on Dec. 31, 2015, are in an area complementary to Jericho's existing operations in Oklahoma and represent the Company's fourth acquisition within Central and Northeast Oklahoma in 2015.
Jericho acquired a 50% working interest ("WI") in a 10,000 acre asset package with current production of approximately 119 barrels of oil equivalent per day. The Company also closed on a 25% WI in a 30,000 acre asset package with average 3Q-15 production of 427 barrels of oil equivalent per day, and intends to acquire an additional 25% WI in this package in 1Q-16.
Allen Wilson, CEO, stated, "We are grateful for the tremendous support of our stakeholders, who share our belief that the current low-price oil environment offers Jericho an extraordinary opportunity to acquire quality producing assets, below what we believe are their long-term intrinsic values, while amassing a land bank with enormous development and drilling upside when prices recover."
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.
Source: Marketwired (Canada)
(January 5, 2016 - 2:09 PM EST)
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