Jericho Oil Corp. (TSXV: JCO, OTC: JROOF), said Jan. 23 that it signed a letter of intent to acquire a 50% working interest in 2,050 acres in northeastern Oklahoma.

The acquisition currently produces about seven barrels of oil equivalent per day.

Oklahoma’s Cherokee Basin, spanning 15 counties, has the same shallow geological formations—400 feet to 900 feet—that Jericho currently operates in Kansas, the company said. The basin is a mature producing area.

The company will begin building out its second platform when the deal closes. This platform will support legacy productive basins.

"The market's recent turbulence has provided us an opportunity to focus our efforts on acquiring assets with good, long-term development potential at favorable pricing. We are excited about starting our second platform and look forward to diligencing more opportunities in Oklahoma. With a strong cash position and no company debt, it is our intention to continue down this path to patiently evaluate leases as they present themselves," said CEO Allen Wilson.

The acquisition will bring the company’s total acreage position to more than 5,800 acres.

Jericho Oil Corp. is based in Vancouver, British Columbia.