A day after announcing it was venturing into exploration of Oklahoma’s big STACK play, Tulsa-based Jericho Oil announced efforts to raise $10 million to help finance the effort.
The company earlier announced the acquisition of an interest in 9,400 net surface acres in the STACK. It stated the transition provided the company the option to invest up to $9 million in acquisition and development capital to acquire just under a third of the joint venture that will own the assets. The land is located in Blaine county, one of the three primary counties that make up the STACK.
In making the announcement, Jericho explained the properties include development targets in up to 6 intervals including multiple landing zones in the Chester, Meramec, Osage and Woodford formations. The company said it had identified 160 locations with unrisked inventory.
The decision to start exploration in the STACK still meets the company strategy of generating attractive returns even with oil prices less than $50 a barrel.
“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.”
At the same time of the announcement, the company’s Board of Directors appointed Brian Williamson as Chief Executive Officer of Jericho Oil Corporation. He’s the current President of Jericho Oil and over-sees operations for the firm’s asset base.