- Initial production rates of Company's first drilled well since 2018 exceed management expectations
TULSA, OK and VANCOUVER, BC / ACCESSWIRE / January 26, 2023 / Jericho Energy Ventures Inc. (TSXV:JEV)(OTC PINK:JROOF)(FRA:JLM) ("Jericho", "JEV" or the "Company") is pleased to announce that the Lazarus #1 vertical well ("Lazarus"), drilled by its Eagle Road Oil, LLC joint venture¹ has been put on production with an initial 45-day average oil rate of 75 barrels per day and average natural gas rate of 65 mcf per day. Critically, the Lazarus oil and natural gas production has not experienced any meaningful decline since first production on December 7th, 2022. The strength, and longevity of the Lazarus well's production profile gives JEV confidence in the overall return profile.
Development of the Lazarus was funded from cash flow, and management expects the well to achieve payout in less than 18 months based on current CME WTI Oil Futures and NYMEX Henry Hub Natural Gas Futures pricing.
The Lazarus #1 was a highly valued, oil-bearing Red Fork and Wilcox formation prospect in Pawnee County, Oklahoma, that had been defined through licensed 3D seismic and extensively characterized by our geology team earlier in 2022. Jericho's JV, Eagle Road, owns approximately 16,000 net acres and production infrastructure central to the Lazarus #1 well and will look to further study offset drilling locations with analogous characteristics that can provide similar returns to shareholders.
Brian Williamson, CEO of JEV, said, "Oil and natural gas price stability provided the Jericho team with the opportunity to drill its first well in over four years and we're extremely pleased with the initial results of our Lazarus #1 well targeting the regionally extensive Red Fork and Wilcox formations. As evidenced by the well's current performance, management expects the Lazarus to provide superior returns at current commodity price futures."
¹ JEV owns 50% of Eagle Road Oil, LLC
About Jericho Energy Ventures
Jericho Energy Ventures (JEV) is an energy company positioned for the current energy transitions; owning, operating and developing both traditional hydrocarbon joint venture assets and advancing the low-carbon energy transition, with active investments in hydrogen. Our wholly owned subsidiary, Hydrogen Technologies, delivers breakthrough, patented, zero-emission boiler technology to the Commercial & Industrial heat and steam industry. We also hold strategic investments and board positions in H2U Technologies (a breakthrough electrocatalyst and low-cost electrolyzer platform) and Supercritical Solutions (developing the world's first, high pressure, ultra-efficient electrolyzer). Jericho also owns and operates long-held producing oil and gas joint venture assets in Oklahoma which it is currently developing from cash flows in an effort to further increase production into the current elevated commodity price environment.
For Further Information:
This news release contains certain "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of applicable securities laws. Such forward-looking statements are not representative of historical facts or information or current condition, but instead represent only Jericho's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Jericho's control. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may", "will" or "may not" occur. Specifically, this news release contains forward-looking statements relating to, among others, future demand for oil and gas and the company's ability to successfully develop its oil and gas joint venture projects and also contains specific forward looking statements relating to production payout expectations which depend significantly on management's assumptions around oil and gas prices as well as production rate expectations of the Lazarus #1 well.
Forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements, which include, but are not limited to: regulatory changes; changes to the definition of, or interpretation of, foreign private issuer status; the impacts of COVID-19 and other infectious diseases; general economic conditions; industry conditions; current and future commodity prices and price volatility; significant and ongoing stock market volatility; currency and interest rate fluctuation; governmental regulation of the energy industry, including environmental regulation; geological, technical and drilling problems; unanticipated operating events; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; liabilities and risks inherent in oil and gas exploration, development and production operations; liabilities and risks inherent in early stage hydrogen technology projects, energy storage, carbon capture and new energy systems; changes in government environmental objectives or plans; and the other factors described in Jericho's public filings available at www.sedar.com.
The forward-looking statements contained herein are based on certain key expectations and assumptions of Jericho concerning anticipated financial performance, business prospects, strategies, regulatory regimes, the sufficiency of budgeted capital expenditures in carrying out planned activities, the ability to obtain financing on acceptable terms, expansion of consumer adoption of the Company's (or its subsidiaries') technologies and products, results of DCC™ feasibility studies and the success of investments, all of which are subject to change based on market conditions, potential timing delays and other risk factors. Although Jericho believes that these assumptions and the expectations are reasonable based on information currently available to management, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Investors should not place undue reliance on forward-looking statements.
Readers are cautioned that the foregoing lists are not exhaustive. The 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 statements that are contained or referenced herein, except as required by applicable securities laws.
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.
SOURCE: Jericho Energy Ventures Inc.