VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 25, 2014) - Mr. Allen Wilson, President and CEO of Jericho Oil Corporation ("Jericho" or the "Company") (TSX VENTURE:JCO) announces that the Company's common shares will resume trading on the TSX Venture Exchange at the market open on Tuesday, March 25, 2014. Jericho has acquired a 50% working interest in two oil lease packages located in Douglas, Linn and Miami Counties, Kansas ("the Kansas Properties"). The Kansas Properties comprise 21 leases (2,688 acres) with current production of 51 barrels of 23° API oil per day. Further to the Company's December 18, 2013 news release, the independent reserve report prepared on the Kansas Properties by B.L Whelan. P. Geo. in accordance with National Instrument 51-101 (the "Reserve Report") has been updated to an effective date of December 31, 2013 as revised March 7, 2014. The Reserve Report has been accepted for filing by the TSX Venture Exchange.
The Reserve Report attributes an NPV for Proved, Developed Reserves of $1,882,000 (before taxes and undiscounted) to Jericho's 50% working interest in the Kansas Properties. The Reserve Report utilized Sproule Consulting's December 31, 2013 forward oil price curve. This NPV does not represent fair market value of the reserves. Only Proved Developed Reserve estimates prepared in accordance with NI 51-101 can be provided at this time as a result of limited historical data. A reserve report encompassing a full 2P & 3P evaluation is in process and forthcoming from the Company.
Jericho also announces the granting of 3.4 million stock options in accordance with its 2013 incentive stock option plan. The options are being issued to officers, directors, employees and consultants. Options issued to consultants providing investor relations services to the Company will vest over a 12 month period at a rate of 25% every three months. All of the options are exercisable at $0.30 per share for a period of 5 years from the date of grant.
Jericho has engaged Tony Blancato, based in the New York metro area, as an independent consultant to provide investor relations services to the company. Jericho has hired Adam Rabiner, based in British Columbia, to manage the Company's corporate communications. Messrs. Blancato and Rabiner, as Directors, Investor Relations and Corporate Communications respectively, will be responsible for communicating with the global investment community, including liaising with Company's shareholders, prospective shareholders and other key target audiences. Both will receive an allocation of incentive stock options from Jericho and report directly to the CEO. Jericho's anticipated budget for investor relations and corporate communications, inclusive of consulting fees, employee compensation and promotion efforts, is expected to be approximately $350,000 during the first 12 months.
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
About Jericho Oil Corporation
Jericho (TSX VENTURE:JCO) is focused on growth through consistent, predictable and repeatable high margin conventional oil production by bringing new and proven technology to legacy, onshore basins in North America. Jericho has acquired a 50% working interest in two oil producing lease packages located in Eastern Kansas, comprising 2,688 acres. Jericho will be undertaking an extensive development program over the next 12 months in partnership with a dedicated, experienced local operator with the aim of enhancing production and reserves. For more information, please visit www.jerichooil.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.