Jericho Oil Corp. (JCO:TSX.V JROOF:OTC) shares have risen 31% after the company announced on Sept. 6 that it had completed the acquisition of a nearly one-third interest on 9,400 net surface areas in the Anadarko STACK in Oklahoma. From CA$0.57 on Sept. 5, Jericho shares closed at CA$0.75 on Sept. 14.
Volume has also skyrocketed from 12,782 on Sept. 5 to as high as 167,298 on Sept. 7.
Jericho simultaneously announced that it closed an oversubscribed non-brokered private placement of CA$10.5 million, consisting of 22,033,567 units at a price of CA$0.48 per unit.
As earlier reported by Streetwise Reports, the joint venture was able to acquire the rights at a much lower cost than many of its neighbors; its implied acreage acquisition cost of $2,300/net Mississippian acre adjusted for PDP compares to as much as $15,000–$20,000 per acre that major players have paid in this area of the STACK.
Brian Williamson, CEO of Jericho, stated, "We are extremely pleased to have completed this transformative transaction, which affords our Company the option to invest in one of the top resource plays in North America. Jericho's operated, beach-head position in Blaine County came at a noteworthy per acre discount to recently completed proximate STACK transactions as well as publicly traded pure-play STACK players. Our team's extensive background working on the Mississippian-aged Meramec and Osage formations gives me great confidence in our ability to execute on our strategic growth initiatives moving forward."
STACK, a major area of energy-development interest in Oklahoma, stands for Sooner Trend Anadarko basin Canadian and Kingfisher counties.
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