Energy Company Secures High-Speed Connectivity in Oklahoma

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Jericho Energy Ventures Inc. (JEV:TSX.V; JROOF:OTC; JLM:FRA) announced that it is partnering with AT&T to install fiber optic technology at is Modular High Performance AI Data Center site in Oklahoma.

The deployment is expected to install a minimum of 10 gigabits per second (Gbps) of connectivity and will leverage the latest technology and data transfer protocols to scale beyond 100 Gbps to meet growth. Higher Gbps speeds mean faster data transfer.

Jericho Energy recently announced it is utilizing its natural gas assets and infrastructure for the development of technology driven Artificial Intelligence (AI) computing solutions by launching its Modular Data Center venture.

The business will be overseen from its Tulsa, Oklahoma, regional office, where its oil and gas joint venture currently owns and operates approximately 40,000 acres of productive land. By converting its natural gas into long-term reliable on-site power, the company said it intends to offer a secure, modular, and next generation computing infrastructure tailored for AI applications as it renewed its focus on maximizing and developing its traditional energy assets.

"We are moving full-steam ahead in building out our AI modular data centers and partnering with industry-leader AT&T along with others to deploy high-speed fiber connectivity on-site is a critical step in developing a next-generation modular AI computing infrastructure," Jericho Chief Executive Officer Brian Williamson said. "By leveraging our natural gas assets and strategic locations, we are uniquely positioned to provide scalable, reliable, and cost-effective power solutions to meet the growing demands of the AI age."

After Jericho made the announcement for the venture last month, Technical Analyst Clive Maund noted that "the company is on a solid footing."

The news is "potentially highly significant as the company has vast quantities of natural gas in the U.S. that can be used to feed power-hungry AI data centers, and it looks like this could turn out to be a major source of revenue."

JV Assets in Oklahoma Driving Pivot

Jericho announced its plan to spin off its hydrogen solutions platform into a separate entity, Hydrogen Technologies Corp., last year. The intention is to create two specialized companies focusing on hydrogen technology and traditional energy assets, respectively. Jericho Energy will retain its traditional oil and gas assets (and the new modular data center venture) following the separation.

"By separating our hydrogen platform, we can create two agile, focused companies . . . positioning them for long-term growth and success," Williamson said at the time.

Through its wholly owned subsidiary, Hydrogen Technologies, Jericho delivers breakthrough, patented, zero-emission boiler technology to the commercial and industrial heat and steam industry.

But it's Jericho's long-held producing oil and gas JV assets in Oklahoma, which the company is developing from cash flows in an effort to further increase production, that it's using for its new Modular Data Center venture.

Jericho's portfolio there includes 65 active and producing wells with total proven reserves of 1,622 million barrels of oil (Mbo) and 2,317 million cubic feet (Mmcf) natural gas, according to Jericho's investor presentation.

Williamson said that in additional to utilizing its natural gas assets for the modular AI centers, "we will work with our local utilities and cooperatives to provide redundant cost-effective power solutions to ensure high availability."

"We also see the pathway where we can leverage our energy transition assets, offering customers a lower-carbon hydrogen fuel solution for their AI (computing)," he said.

Analyst Sees Bullish Signs

Jericho's major backers among its shareholders includes Ed Breen, executive chairman and CEO of DuPont; Belzberg & Co., led by Strauss Zelnick, chairman and CEO of video game giant Take-Two Interactive; McKenna & Associates, led by Andrew J. McKenna; the Graves family, a multi-generational U.S energy asset owner and operator; and Frank Drendel, founder and chairman emeritus of CommScope.

The company also announced it granted 1 million incentive stock options under its stock option plan to McKenna & Associates, a boutique advisory and investment firm and a 10% security holder of JEV. The firm's principal is Andrew J. McKenna. The options are exercisable at a price of CA$0.20 for a period of up to three years. 

"Jericho's launch of its natural gas-powered modular AI data center in Oklahoma is a smart, forward-thinking response to rising U.S. data storage demand," McKenna & Associates President Brian Schafer said. "It reflects bold vision and strong execution to merge resilient and deployable data centers that capitalize on the plethora of small natural gas repositories across America's heartland. I have full confidence in the management team and their strategy, and I remain fully committed to supporting Jericho's next growth phase — including exploring a U.S. listing — as the Company works to deliver greater shareholder value at this pivotal stage."

Maund said a rally made by the stock from December lows "was on good volume," and the Accumulation line was relatively strong.

"We have this month seen a bullish cross of the moving averages," he wrote. "So, it looks like some sort of base pattern is completing."

The analyst rated Jericho an Immediate Speculative Buy with targets at CA$0.20, CA$0.80, and CA$1.20-1.30.

The Catalyst: Data Center Investment Surging

An October report from McKinsey & Co. said demand for AI-ready power is offering opportunities for companies and investors across the value chain, and projects that global data center demand could grow 19-22% annually from 2023 to 2030, reaching 171-219 gigawatts (GW), Jericho said.

To prevent a supply shortfall, double the capacity built since 2000 would need to be constructed in under a quarter of the time, JEV said.

Writing for Data Centre Dynamics Ltd. in London, Enel North America Head of Flexibility Molly Jerrard wrote on April 2 that the grid was not designed to handle the demand that is coming.

"The traditional utility model, which relies on long-term grid expansion to meet demand, is too slow to keep up with this growth," she wrote. "Supply chain restraints, permitting delays, and rising costs make implementing new transmission infrastructure a years-long process. And innovation isn't willing to wait that long."

Global investment in U.S. data centers is surging. On January 7, 2025, Dubai-based DAMAC Properties announced plans to invest an initial US$20 billion into data centers tailored for AI and cloud computing, with the first phase of the project planned to take place in Oklahoma, Texas, Louisiana, Ohio, Illinois, and Indiana.

"We are taking a page from the playbook of our industry leaders, utilizing our natural gas and infrastructure as a means to fuel modular AI computing solutions," Williamson said. "We believe this unlocks a transformative growth opportunity. By aligning our energy resources with the booming demand for modular AI computing infrastructure, we aim to boost revenue and elevate shareholder value through an innovative, sustainable approach."

The International Energy Agency reported that the situation has escalated dramatically "into a full-blown global energy crisis" after Russia's invasion of Ukraine, with natural gas prices reaching record highs and oil prices rising.

Ownership and Share Structure

Around 41% of Jericho's shares are held by management and insiders, the company said. They include CEO Brian Williamson, who owns 1.38%; founder Allen Wilson, who owns 0.99%; and board member Nicholas Baxter, who owns 0.49%; according to Refinitiv's latest research.

Around 34% of shares are held by the company's "Top 10 external shareholders." The rest is in retail.

JEV's market cap is CA$48.53 million, and it trades in a 52-week range of CA$0.08 and CA$0.22. It has 303.3 million shares outstanding, about 220.28 million floating.