After success of first Osage formation test well, Jericho continues drilling momentum

TULSA -- Jericho Oil Corporation announces that its Oklahoma STACK Joint Venture (JV) will commence this week with the drilling of its second Osage formation well, the Trebuchet 21-23N-10W #1H, within its northern STACK acreage position further delineating the nearly 16,000 net STACK acres. This will be Jericho’s third well drilled in the STACK Play in 2018 and second in the Osage formation.

This second Osage formation well follows the successful completion of the Swordspear 23-10-15 1H well, located within the STACK JV’s Farm-in Acreage (announced January 2018) located on the Major and Alfalfa County border, the northern boundary of the Oklahoma STACK Play. The Swordspear well, after 45 days on an electrical submersible pump (ESP), continues to produce at an average rate over 400 boed (55% oil). Osage formation wells commonly take 60-100 days from the start of first oil to reach peak initial production with the Swordspear benefiting from a shallow initial decline rate.

Critically, surrounding permitting and drilling activity continues to pick up around the STACK JV’s position in Major County from public and private operators. New assignments, per public Oklahoma State records, for leases in the Northern STACK area have increased 1,800% year over year from July 2017 to June 2018, demonstrating the increased focus on pushing the northern boundary of the STACK Play of Oklahoma. Following on this growing interest in the northern STACK, Alta Mesa Resources (AMR; through its Kingfisher Midstream subsidiary) recently announced plans to significantly expand its midstream system to service Major County and its increasing level of drilling activity with a new high-pressure pipeline for oil, water and gas. The capital commitment by Kingfisher Midstream affirms the positive well results the STACK JV and others are experiencing in the area.

The STACK JV owns a 47.5% working interest in the Swordspear and a 48% working interest in the newly drilled Trebuchet. The northern STACK position was accumulated at very attractive per acre rates and represents hundreds of future drilling locations at compelling economics.