SOURCE: Jericho Oil Corporation

Jericho Oil Corporation

August 03, 2016 07:30 ET

Jericho Oil Announces New Joint $30 Million Credit Facility

TULSA, OK and VANCOUVER, BC--(Marketwired - August 03, 2016) - Jericho Oil Corporation ("Jericho") (TSX VENTURE: JCO) (OTC PINK: JROOF) announces that, in conjunction with its private family partner, it has entered into a USD$30 million Senior Secured Revolving Credit Facility (the "Facility") with East West Bancorp, Inc. (NASDAQ: EWBC) as the sole arranger. The initial borrowing base has been set at $10 million. The Facility is available for working capital requirements, capital expenditures, acquisitions, general corporate purposes, and to support letters of credit.

The Facility will bear interest at a rate of WSJ Prime (currently 3.50%) plus 75 basis points and will be payable monthly. The interest rate will be fixed at 4.25% for the first six months of the Facility. The Facility, subject to customary financial covenant tests, matures on July 29, 2018 and will be subject to semi-annual re-determinations and will be secured by a first lien on substantially all of the Company's assets.

"We welcome our new relationship with East West, a Tier 1 bank with a talented, veteran energy team," said Allen Wilson, CEO of Jericho Oil. "Their approval of the Facility and the favorability of their terms is a testament to our clean balance sheet and the quality of our existing portfolio of assets, and allows us to accelerate our roll-up of undervalued, high quality Central Oklahoma oil and gas assets. Until now, we have financed our acquisitions and property development exclusively through the strong support of our equity shareholders and today marks an exciting step forward in positioning our capital structure to support further growth and opportunities."

In connection with and subject to the new Facility, Jericho has also entered into commodity hedging contracts to strengthen and protect the Company's cash flows, while maintaining optimal upside, covering 75% of forecasted engineered oil and natural gas volumes for the term of the Facility. The following table presents the Partnership's open commodity oil and natural gas derivatives positions as of August 1, 2016:

                                      
Crude Oil Volumes  3Q16   4Q16   1Q17   2Q17   3Q17   4Q17   1Q18   2Q18   3Q18  
WTI Swap Volume (Bbl / m)   13,500    13,500    10,500    10,500    10,500    10,500    0    0    0  
 Price ($ / bbl)  $45.00   $45.00   $45.00   $45.00   $45.00   $45.00   $-   $-   $-  
                                               
Collar Volume (Bbl / m)   0    0    0    0    0    0    0    0    0  
 Ceiling Price (Bbl / m)  $-   $-   $-   $-   $-   $-   $-   $-   $-  
 Floor Price ($ / bbl)  $-   $-   $-   $-   $-   $-   $-   $-   $-  
                                               
Put Volume (Bbl / m)   13,718    19,204    20,692    19,202    13,569    10,514    20,287    19,458    6,361  
 Floor Price ($ / bbl)  $43.00   $43.00   $44.25   $44.25   $44.25   $44.25   $43.50   $43.50   $43.50  
                                               
Total Hedged Volume (Bbl / m)   27,218    32,704    31,192    29,702    24,069    21,014    20,287    19,458    6,361  
 Floor Price ($ / bbl)  $43.99   $43.83   $44.50   $44.52   $44.58   $44.62   $43.50   $43.50   $43.50  
 % Hedged   67 %  85 %  85 %  85 %  72 %  65 %  65 %  65 %  22 %
                                               
                                               
                                               
Natural Gas Volumes   3Q16    4Q16    1Q17    2Q17    3Q17    4Q17    1Q18    2Q18    3Q18  
NG Swap Volume (mmbtu / m)   48,853    69,679    0    0    0    0    51,703    45,681    14,834  
 Price ($ / mmbtu)  $2.84   $2.84   $-   $-   $-   $-   $3.03   $3.03   $3.03  
                                               
Collar Volume (mmbtu / m)   0    0    65,400    61,859    58,525    55,735    0    0    0  
 Ceiling Price (mmbtu / m)  $-   $-   $3.20   $3.20   $3.20   $3.20   $-   $-   $-  
 Floor Price ($ / mmbtu)  $-   $-   $3.00   $3.00   $3.00   $3.00   $-   $-   $-  
                                               
Put Volume (mmbtu / m)   0    0    0    0    0    0    0    0    0  
 Floor Price ($ / mmbtu)  $-   $-   $-   $-   $-   $-   $-   $-   $-  
                                               
Total Hedged Volume (mmbtu / m)   48,853    69,679    65,400    61,859    58,525    55,735    51,703    45,681    14,834  
 Floor Price ($ / mmbtu)  $2.84   $2.84   $3.00   $3.00   $3.00   $3.00   $3.03   $3.03   $3.03  
 % Hedged   49 %  75 %  75 %  75 %  75 %  75 %  75 %  75 %  25 %
                                               
                                               

About Jericho Oil Corporation

Jericho is a growth-oriented oil and gas company engaged in the acquisition, exploration, development and production of overlooked and undervalued oil properties in the Mid-Continent. For more information, please visit www.jerichooil.com.

About East West

East West Bancorp, Inc. is a publicly owned company with total assets of $33.0 billion and is traded on the Nasdaq Global Select Market under the symbol "EWBC". The Company's wholly owned subsidiary, East West Bank, is one of the largest independent banks headquartered in California with a market capitalization near $5 billion. For more information, please visit www.eastwestbank.com

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.

Contact Information

  • CONTACTS:
    Tony Blancato
    Director, Investor Relations
    P: 215.383.2433

    or

    Adam Rabiner
    Director, Corporate Communications
    P: 604.343.4534
    investorrelations@jerichooil.com