Jericho Oil Publishes CEO Letter Addressing Current Market Conditions
TULSA, Okla. and VANCOUVER, British Columbia, March 10, 2020 (GLOBE NEWSWIRE) — Jericho Oil Corporation (“Jericho” or the “Company”) (TSX-V: JCO; OTC PINK: JROOF) today has published a letter to shareholders from Brian Williamson, CEO:
I felt it was important, particularly at this moment in time, to apprise our shareholders of Jericho’s plan going forward as we face these difficult market conditions.Over the past several weeks, we have seen negative effects both in the oil industry, and the market at large, as the world’s largest consumers of oil have dramatically slowed economic activity while they look to contain and manage the COVID-19 (Coronavirus) outbreak. As the world works to combat this virus and contain the spread, the oil market has been doubly challenged by a simultaneous price war and supply shock.OPEC+, led by Saudi Arabia and Russia failed to broker an agreement on constraining output in the face of lower global demand to support prices. This move, by all accounts, has essentially started an oil price war between Saudi Arabia and Russia with far-reaching consequences in the U.S. As a result, we have seen the price of oil collapse into the $30’s (WTI) with no line of sight on a quick recovery. How low the price goes and how long it stays there will determine the impact on future supply and demand. All these issues combined will help determine and guide Jericho’s future strategy.Jericho’s team has had in place, a contingency plan that was generated back in 2016 when the market saw similar pricing. Although we had hoped to never need to implement, we have prepared for this and are now shifting it into place to meet the new realities of the industry. We currently believe that our plan should allow our operating joint ventures to remain cash flow neutral and still be deal-opportunistic, leaving Jericho in an advantaged position moving forward. As has been our practice, we will sustain best business and safety practices while operating the company at the highest and best standards.Sincerely,Brian Williamson
Chief Executive Officer
Jericho Oil CorporationAbout 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 a 55,000 net acre position across Oklahoma.The forward-looking information and forward-looking statements contained in this news release are made as of the date of this news release, and Jericho does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws.