VANCOUVER, BRITISH COLUMBIA–(Marketwired – Feb. 28, 2014) – Mr. Allen Wilson, President and CEO of Jericho Oil Corporation (formerly Dakar Resource Corp.) (“Jericho” or the “Company”) (TSX VENTURE:JCO) announces that the Company has raised $6.547 million by way of a non-brokered private placement of 21,826,366 units (the “Units”) at $0.30 per unit (the “Offering”). The Offering substantially exceeds the Company’s original target of $5.0 million which was announced December 18, 2013. Each unit is comprised of one common share and one half warrant (a “Warrant”) with each whole Warrant being exercisable into one common share at $0.50 per share for two years from closing. The Offering is being sold in the exempt market and primarily to accredited investors in Canada and the U.S. Cash finder’s fees of 7% ($95,200) have been paid on $1,360,000 of the funds raised on the Offering. All securities issued under the Offering are subject to a four month hold period expiring June 29, 2014.
Proceeds of the Offering will be used to close the acquisition (the “Acquisition”) of a 50% working interest in two oil lease packages located in Kansas (“the Kansas Properties”). The Properties comprise 2,688 acres with current production of 51 barrels of oil per day. Jericho is paying $2.475 million cash for its working interest in the Kansas Properties. Jericho anticipates that its 50% share of initial development expenditures for infill drilling and other exploration and development will be $2.5 million over the next 12 months. An independent reserve report (effective December 31, 2013) has been prepared on the Kansas Properties by B.L Whelan. P. Geo. in accordance with National Instrument 51-101 (the “51-101 Report”) and filed with the TSXV in connection with the Acquisition.
The Company changed its name to “Jericho Oil Corporation” from “Dakar Resource Corp.” effective February 27, 2014. Jericho’s new trading symbol on the TSXV is “JCO” effective February 27, 2014. Jericho’s shares will resume trading on the TSXV as soon as the TSXV has approved final editing changes to the 51-101 Report.
The Acquisition and Offering do not result in a change of control of Jericho. The Acquisition is considered an arm’s length transaction.
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.
ON BEHALF OF THE BOARD
Allen Wilson, President, C.E.O. and Director
Cautionary Note Regarding Forward-Looking Statements
This news release includes certain “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities laws. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual events and results to differ materially from Dakar’s expectations include risks related to the exploration stage of Dakar’s project; market fluctuations in prices for securities of exploration stage companies; and uncertainties about the availability of additional financing.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.