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After more than six months of extensive geological and geophysical work, along with methodical acreage accumulation, and a strategic Osage formation test well, the company is excited to further delineate and develop the Stack JV’s nearly 16,000 net acre position.
Jericho Oil Corporation (TSXV:JCO,OTCPINK:JROOF) reports that its Oklahoma Stack joint venture has brought online a successful test well of the Osage formation within its northern Stack acreage position. After more than six months of extensive geological and geophysical work, along with methodical acreage accumulation, and a strategic Osage formation test well, the company is excited to further delineate and develop the Stack JV’s nearly 16,000 net acre position.
As quoted from the press release:
The Swordspear 23-10-15 1H well in SEC 15 T23N R10W is located within the Stack JV’s farm-in acreage located on the Major and Alfalfa County border, the northern boundary of the Oklahoma stack play. The Swordspear, after 30-days on an electrical submersible pump, is producing at an average rate of 400 oil-equivalent barrels (“BOE”) per day (61 percent oil). Osage formation wells commonly take 60-100 days from the start of first oil to reach peak initial production. As such, we are highly encouraged due to elevated bottom hole pressure on the producing wellbore relative to expectations, often a key determinant for higher producing rates over time. The most recent daily production reading is over 500 BOE per day.
The Stack JV owns a 47.5 percent working interest in the Swordspear. Current ultimate recovery projections place the potential rate of return at greater than 50 percent (assuming $65bbl / $3mcf and $5mm completed well cost). The northern stack position was accumulated at very attractive per acre rates and represents hundreds of future drilling locations at compelling economics.
“We are incredibly encouraged with the early results of the Swordspear, successfully testing the Osage, proving the extent, both geographically and geologically, of the formation in the northern stack play of Oklahoma. First mover advantage in the northern stack has allowed our company to assemble thousands of acres at very attractive per acre prices, and we look forward to continuing to delineate and develop our asset base to drive production growth and strong risk-adjusted returns for our shareholders. We are also excited to see large majors like Exxon begin to develop their acreage position just south of our development wells,” Brian Williamson, CEO of Jericho said.