Jericho Oil has a high-quality Mid-Continent portfolio of oil-focused, stacked-pay assets located in central Oklahoma. Jericho continually strives to maximize cash flow from production properties for reinvestment in drill-bit driven growth opportunities.
Located primarily in Oklahoma’s Canadian, Kingfisher, Major and Blaine counties, the STACK has become one of the best emerging horizontal development play in North America. The STACK is an acronym describing both its location – Sooner Trend Anadarko Basin Canadian and Kingfisher County – and multiple, stacked productive formations present in the area. The STACK is a prolific hydrocarbon system with high oil and liquids-rich natural gas content, multiple horizontal target horizons, extensive production history and historically high drilling success rates. The fields were originally developed by the large majors (Exxon and Texaco) and have historically been drilled vertically on 80-acre spacing. Since 2011, when the play was rediscovered through the advent of horizontal development and hydraulic fracturing, hundreds of billions of dollars have moved into the basin driving significant learnings resulting in repeatable stacked, multi-zone unit development across the play. Some of the largest U.S. E&P’s have significant assets and investments in the STACK including: Continental Resources, Devon Energy, Marathon Oil, Alta Mesa Resources, Newfield Exploration and Chesapeake Energy.
The STACK is among the lowest cost basins in the U.S. which has driven significant investment despite the recent low oil prices. Jericho has assembled a 14,000 contiguous, low-cost net acreage position centered on the normally-pressured oil window of the STACK play. The Company’s focus in 2018 is primarily on the horizontal development of the Mississippian-age Osage and Meramec formations in Blaine and Major counties. Typical 1-mile horizontal wells in the basin produce approximately, 500,000 to 1,000,000 barrels of oil equivalent with rates of return greater than 75%.
Our eastern Oklahoma assets, primarily located in Creek, Pawnee, Seminole and Pottawatomie counties produce significant cash flow for the Company in addition to providing measurable upside in stacked formations including the Mayes, Caney, Hunton and Woodford formations. Much like our STACK play, our acreage position in eastern Oklahoma lies within historically big play oil fields that have produced over 100,000,000 barrels of oil vertically. The organic rich Woodford shale sources much of the oil in our eastern Oklahoma plays, with unconventional rock ideal for modern fracture stimulation and horizontal development. Jericho currently has approximately 40,000 net acres in eastern Oklahoma.