Finance & Investing | Fundraising | Capital Markets

Jericho Wraps Up Financing to Fund MidCont Acquisition

Share Print Bookmark    |    Wednesday,January 06,2016

Jericho Oil Corporation has closed its non-brokered private placement (the "Offering") of 17,323,610 units at $0.40 per Unit for gross proceeds of $6.929 million. 

Each Unit is comprised of one common share (a "Share") and one half warrant (a "Warrant"). Each whole Warrant is exercisable into one additional Share at $0.60 per Share for two years from closing. The Shares and Warrants are subject to a four month hold period from the date of closing. No finders' fees or commissions were paid in connection with the Offering.

Proceeds of the Offering were used to acquire producing wells and prospective acreage in Central Oklahoma, outlined by the Company in news releases on Oct. 19, 2015 and Nov. 23, 2015. The acquisitions, which closed on Dec. 31, 2015, are in an area complementary to Jericho's existing operations in Oklahoma and represent the Company's fourth acquisition within Central and Northeast Oklahoma in 2015.

Jericho acquired a 50% working interest ("WI") in a 10,000 acre asset package with current production of approximately 119 barrels of oil equivalent per day. The Company also closed on a 25% WI in a 30,000 acre asset package with average 3Q-15 production of 427 barrels of oil equivalent per day, and intends to acquire an additional 25% WI in this package in 1Q-16. 

Allen Wilson, CEO, stated, "We are grateful for the tremendous support of our stakeholders, who share our belief that the current low-price oil environment offers Jericho an extraordinary opportunity to acquire quality producing assets, below what we believe are their long-term intrinsic values, while amassing a land bank with enormous development and drilling upside when prices recover."