Jericho Oil Announces Reaffirmation of Borrowing Base and Restructuring of Hedging Program
TULSA, Okla., Dec. 17, 2018 (GLOBE NEWSWIRE) — Jericho Oil Corporation (“Jericho”) (TSX-V: JCO; OTC PINK: JROOF) is pleased to announce that the lender under its USD$30 million Senior Secured Revolving Credit Facility (the “Facility”), East West Bancorp, has reaffirmed its borrowing base at $7.5mm following the Company’s regularly scheduled semi-annual redetermination process. There were no other material changes to the terms of the Facility resulting from this borrowing base redetermination.
The Company also reports that it has opportunistically restructured its commodity hedge positions to eliminate upside caps on its realized price for crude oil, in addition to raising the floor which protects the Company’s realized price to the downside.
Brian Williamson, CEO of Jericho Oil, stated, “We are encouraged by the outcome of our recent redetermination process, which we believe to reflect the quality of our Mid-Continent position and the economics associated with our continued investment,” adding, “we appreciate the support of our lending bank and their commitment to partner with us as we continue to add to our proved reserves base and execute on our growth strategy throughout 2019.”
About Jericho Oil Corporation
Jericho Oil (www.jerichooil.com) is focused on domestic, liquids-rich unconventional resource plays, located primarily in the Anadarko basin STACK Play of Oklahoma. Jericho’s primary business objective is driving long-term shareholder value through the growth of oil and gas production, cash flow and reserves. Jericho has assembled an interest in 55,000 net acres across Oklahoma, including an interest in ~16,000 net acres in the STACK Play. Jericho owns a 26.5% interest in STACK JV.
Jericho’s current operations are focused on the oil-prone Meramec and Osage formations in the STACK. The Jericho team applies advanced engineering analyses and enhanced geological techniques to under-developed resource areas.
Jericho, with operational headquarters in Tulsa, Oklahoma, trades publicly on the TSX-Venture Exchange (JCO) and OTC Markets (JROOF). Jericho owns its net acre position in Oklahoma through, and participates in the STACK JV through, one or more wholly owned subsidiaries.
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 Jericho’s expectations include risks related to the exploration stage of Jericho’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.
Director, Investor Relations