Jericho Oil Corp. signed a definitive agreement to acquire a 50% working interest in producing wells and drillable leaseholds in central Oklahoma for $6.5 million total cash consideration, the company said Nov. 23.
The acquisition is in Seminole, Pottawatomie, Lincoln and Payne counties, spanning five contiguous land packages complementary to Jericho’s existing Oklahoma operations.
This will be the company’s fourth announced acquisition within central and northeast Oklahoma in 2015.
The acreage spans a highly prolific region with prospectivity in high-quality source rocks, such as the Woodford Shale, and multiple productive reservoirs including Hunton, Mississippi Lime, Red Fork and Skinner. The majority of the acquired production is located in the Searight and Oaktree fields.
There are about 50 producing wells on 30,000 net acres, and reserves are about 90% proved developed, about 80% oil.
The reserve-to-production ratio is about 8.5 years, and about 1.25 million barrels of oil equivalent (MMboe), were acquired at about $10.08/bbl.
During the third quarter, there was 427boe/d net production acquired at $30,458 per flowing boe. This increased production by 225%, the company said.
The acquisition is scheduled to close in December, and its effective date is October 1.
Vancouver, British Columbia-based Jericho Oil Corp. explores and produces oil in eastern Kansas and provides technology to onshore basins across North America.
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