Jericho Oil Corporation
750 W Pender Street, Suite 350, Vancouver, Canada

Jericho Oil Corporation’s primary business objective is to drive long-term shareholder value through the growth of oil and gas production, cash flow and reserves.

Jericho’s growth strategy is achieved through the acquisition and development of overlooked and undervalued assets across the Mid-Continent region, primarily in Kansas and Oklahoma. The Company brings a systematic, consistent asset development plan to revitalize, exploit and expand known-producing oil-focused fields and basins that have been underserved from both a capital and modern technological perspective.

In order to achieve Jericho’s primary business objective of driving long-term shareholder value through the growth of oil and gas production, cash flow and reserves, the Company has identified basins located within the Mid-Continent which have experienced the most severe capital flight amid the precipitous drop in the price of oil.  Pervasive capital accessibility has the ability to veil the true economic  and repeatable viability of drilling oil and gas reserves.  However, since the drop in the price of oil, credit and equity has become scarce amongst what once were considered the ‘next’ horizontally-drilled shale plays.  Excluding only the most economic and highest-return basins (e.g., Eagle Ford and Permian), capital flight has led to a demonstratively sharp decline year-over-year (65+ %) in the Baker Hughes Rig Count among many Mid-Continent basins.  Accordingly, capital flight from the Mid-Continent region specifically, has produced illiquidity and, more importantly, market dislocations in regards to the long-term intrinsic value for both cash flow positive and highly-distressed assets alike.

Many of the Mid-Continent basins may yet prove to be viable long-term manufactures of oil and gas reserves.  However, lower prices have left the region capital starved and / or distressed.  This dislocation presents Jericho with the opportunity to acquire undervalued and underappreciated assets at appreciable discounts to the true underlying value while creating a margin of safety.  Most importantly, the Company has no illusions as to the current pricing reality under which current investment opportunities are being evaluated and accordingly, does not presume to ‘predict’ or ‘guess’ any eventuality in regards to a price recovery: the Company seeks to employ discipline, patience and strong judgement in evaluating oil and gas assets.

Based in Vancouver, British Columbia, with a regional office in Tulsa, Oklahoma, Jericho commenced operations in March, 2014 on the TSX-Venture and has since grown through seven transactions with gross production totaling over 650 BOEPD (85% Oil).  Jericho holds a weighted average of 35% Working Interest across its asset base with a private family partner owning the remaining Working Interest.

Jericho Oil Corporation’s primary business objective is to drive long-term shareholder value through the growth of production, cash flow and reserves.  The Company’s strategy is implemented through the following key elements.

Growth through the acquisitions of overlooked and undervalued assets across the Mid-Continent region.

Jericho Oil’s acquisition strategy focuses on Mid-Continent oil and natural gas basins that provide significant opportunities for the development of multi-stacked reservoirs, regional consolidation and future production and reserves growth.  Our target assets are within legacy producing, shallow, low-risk, low-decline, oil-based reservoirs.

Most recently, due to the precipitous drop in the price of oil, Jericho has been afforded the opportunity to acquire production, reserves and cash flow, at appreciable discounts to the long-term intrinsic value of oil and gas assets. While many companies “manage” through the historical oil price downturn, Jericho has shifted its focus from drilling and development to creating shareholder value through acquisitions.

In an environment where prices are generally falling, fear of loss causes investors to focus solely on the possibility of continued price declines to the exclusion of investment fundamentals. Accordingly, acquisition pricing for production and reserves have fallen considerably along with the price of oil. As such, Jericho is actively looking, but remains patiently aggressive, on the acquisition front.

Organically Grow Production, Reserves and Cash Flow.

Jericho Oil maintains a sizable inventory of drilling and optimization projects to achieve organic growth through its capital program.  We focus on exploiting low-risk, productive assets through the implementation of primary and secondary oil recovery techniques.  Drilling opportunities are based on low-risk, repeatable locations in order to maintain and increase cash flow. Many of our assets and wells are completed into multiple producing zones with commingled production.

Drilled wells are primarily completed vertically.  We are experienced in operating and developing horizontal and directional wells.  Jericho will first consider vertical development but will always utilize the appropriate drilling technique when evaluating potentially recoverable reserves and risk.

Reduce Costs Through Operational Efficiencies.

Jericho Oil focuses on driving operational efficiencies across its entire asset base resulting in high netbacks and strong per barrel performance.  We work diligently to maintain a tight operating radius and to lease and purchase only contiguous and proximate acreage and production.  This allows Jericho to capitalize on economies of scale, making it easier for less human capital and resources to operate a growing production and acreage base.