TULSA, Okla. and VANCOUVER, British Columbia, Nov. 12, 2018 (GLOBE NEWSWIRE) — Jericho Oil Corporation (“Jericho”) (TSX-V: JCO; OTC PINK: JROOF) is pleased to provide an update regarding its ongoing participation in its Oklahoma STACK Joint Venture (“STACK JV”). The Company’s 2018 development plan within the STACK continues to focus on the delineation and de-risking of its acreage position for the Meramec and Osage formations. Currently, the STACK JV now has an interest in four Osage formation wells and two Meramec formation wells. An update is provided below on the drilling, completion and flowback of our most recent Osage and Meramec wells:
Drilling Operations:
Trebuchet 21-23N-10W #1H (Operator: Armor Energy; Major County – Osage)
— 48.0% Working Interest
— Drilling ahead in the lateral section – ~90% of the planned total measured depth
— To-date, we have seen tremendous strides in the rate-of-penetration (“ROP”) on the Trebuchet relative to our first Osage formation well (the Swordpear 15-23N-10W #1H) attributable primarily to an improved drilling-bit set-up and specific lateral geo-steering.
— The ROP in the lateral on the Trebuchet is approximately 1.6x-1.8x the Swordspear at the same measured depth putting downward pressure on total rig days for the well
— The fracture stimulation of the well is expected to begin in late-November / early December
Flowback Operations:
Valkyrie 6-19N-12W #1H (Operator: Staghorn Petroleum; Blaine County – Meramec)
— 23.5% Working Interest
— 35 fracture stimulation stages successfully performed and currently in flowback
— After only a few days on flowback, we are extremely pleased with the resulting downhole pressures and total fluid flowback
The STACK JV’s operations on its second Meramec formation well (the Valkyrie) on its western flank and a second Osage formation well (the Trebuchet) on its northern most STACK acreage is a continuation of the Company’s delineation plan for the STACK.
Brian Williamson, CEO of Jericho Oil, stated, “The Company continues to deliver on its two-pronged strategy of delineating and de-risking our STACK acreage for the Meramec and Osage formations,” adding, “our second Meramec and Osage formation wells have given our team the added knowledge and confidence in our world-class acreage position. We continue to learn from each well and have put forth best practices on our Trebuchet well to decrease drilling costs in the lateral section. We are excited to provide further updates on the production of these wells by year-end.”
Jericho also reports that it has retained Equity Guru Media Inc. for a 6-month editorial marketing contract. Chris Parry owns www.equity.guru and is a two-time Webster Award winning journalist who has been featured in the pages of The Vancouver Sun, The Province, National Post, Spin, Hollywood Reporter, FHM, Stuff, and Stockhouse. He was the first business journalist to identify and focus on the move to marijuana as an investment opportunity, and started Equity.Guru as a venue for honest, no punches pulled coverage of the North American public markets. The terms of the contract are for C$8,333.33 per month for 6 months of coverage commencing November 1, 2018. About Jericho Oil Corporation
Jericho Oil (www.jerichooil.com) is focused on domestic, liquids-rich unconventional resource plays, located primarily in the Anadarko basin STACK Play of Oklahoma. Jericho’s primary business objective is driving long-term shareholder value through the growth of oil and gas production, cash flow and reserves. Jericho has assembled an interest in 55,000 net acres across Oklahoma, including an interest in ~16,000 net acres in the STACK Play. Jericho owns a 26.5% interest in STACK JV.
Jericho’s current operations are focused on the oil-prone Meramec and Osage formations in the STACK. The Jericho team applies advanced engineering analyses and enhanced geological techniques to under-developed resource areas.
Based in Vancouver, British Columbia, with operational headquarters in Tulsa, Oklahoma, Jericho trades publicly on the TSX-Venture (JCO) and OTC (JROOF). Jericho owns its net acre position in Oklahoma through, and participates in the STACK JV through, one or more wholly owned subsidiaries.
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.
Nov 08, 2018 12:28 pm
By Tekoa Da Silva
I had the chance to sit down once again with Rick Rule, the president and CEO of Sprott U.S. Holdings, Inc. The topics of discussion covered what can often “go wrong” with general and administrative expenses, change of control provisions, changes in corporate strategy (referred to as “mission drift” in this context), and uniquely structured insider private placements.
“Many junior mining companies don’t regard shareholders as partners, they regard them as unsecured creditors,” explained Rule. “[So] anticipating outcomes based on the self-interest of the executives is the best way to understand [how] things are going to unfold.”
Commenting on general and administrative expense items, Rule noted that, “I have seen several circumstances where $10 million market cap companies with $800 thousand in the treasury were paying the CEO $450 thousand a year. In other words, the CEO’s salary alone was taking up 5% of market cap — on an annual basis. That means the CEO, him- or herself (if you assume they have $800 thousand left in the company), will bankrupt the company in [less than two years].”
Speaking toward change of control provisions, Rule recounted that, “Many people raise money from private parties with the view that they’re going to make a discovery and sell the discovery. And what you learn is that many management teams get paid twice. I have seen, in a number of circumstances, management teams [install] change of control provisions … where if the company is sold (which was their stated intention), they get compensation on sale equal to five years of their average salary and bonus expense, and five years of ancillary expenses — things such as rent and health benefits.”
“That’s one of the reasons why some management teams are willing to entertain merger and acquisition,” Rule added, “where their only participation in the company is as option holders. I’ve had a lot of bad experience, frankly, with change of control provisions, which is one of the reasons I study them.”
On the subject of oddly structured insider private placements, Rule explained that, “Private placements, where the company loans the executives the money to [buy] the private placement, … [are] the private placements … I really dislike. In other words … the private placement is just a recycle that allows the management team to sell the stock and strip the warrant — which is an artificial way of increasing their [own] options position. And that’s fairly common.”
When asked how one can protect themselves from the aforementioned (and more), Rule explained that, “One of the ways you can defend yourself … is by limiting your speculations (irrespective of apparent prospectivity or promotion) to companies that are headed by people who have been serially successful in the past … With a class-1 team at the helm [you’re] more likely to be successful.”
“As a speculator,” Rule concluded, “your gains are [usually] hard won. I’m reminded of the scientists’ observation that the harder they work, the luckier they get.”
To watch the full video interview with Rick Rule, the president and CEO of Sprott U.S. Holdings, Inc. click here. Read in browser »
Sprott U.S. Media, Inc. is a wholly owned subsidiary of Sprott Inc., which is a public company listed on the Toronto Stock Exchange and operates through its wholly-owned direct and indirect subsidiaries: Sprott Asset Management LP, an adviser registered with the Ontario Securities Commission; Sprott Private Wealth LP, an investment dealer and member of the Investment Industry Regulatory Organization of Canada; Sprott Global Resource Investments Ltd., a US full service broker-dealer and member FINRA/SIPC; Sprott Asset Management USA Inc., an SEC Registered Investment Advisor; and Resource Capital Investment Corp., also an SEC Registered Investment Advisor. We refer to the above entities collectively as “Sprott”.
The information contained herein does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation.
Forward-Looking Statement
This report contains forward-looking statements which reflect the current expectations of management regarding future growth, results of operations, performance and business prospects and opportunities. Wherever possible, words such as “may”, “would”, “could”, “will”, “anticipate”, “believe”, “plan”, “expect”, “intend”, “estimate”, and similar expressions have been used to identify these forward-looking statements. These statements reflect management’s current beliefs with respect to future events and are based on information currently available to management. Forward-looking statements involve significant known and unknown risks, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking statements contained in this document. These factors should be considered carefully and undue reliance should not be placed on these forward-looking statements. Although the forward-looking statements contained in this document are based upon what management currently believes to be reasonable assumptions, there is no assurance that actual results, performance or achievements will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this presentation and Sprott does not assume any obligation to update or revise.
Views expressed regarding a particular company, security, industry or market sector should not be considered an indication of trading intent of any fund or account managed by Sprott. Any reference to a particular company is for illustrative purposes only and should not to be considered as investment advice or a recommendation to buy or sell nor should it be considered as an indication of how the portfolio of any fund or account managed by Sprott will be invested.
Past performance does not guarantee future results. The views and opinions expressed herein are those of the author’s as of the date of this commentary, and are subject to change without notice. This information is for information purposes only and is not intended to be an offer or solicitation for the sale of any financial product or service or a recommendation or determination by Sprott Global Resource Investments Ltd. that any investment strategy is suitable for a specific investor. Investors should seek financial advice regarding the suitability of any investment strategy based on the objectives of the investor, financial situation, investment horizon, and their particular needs. This information is not intended to provide financial, tax, legal, accounting or other professional advice since such advice always requires consideration of individual circumstances. The products discussed herein are not insured by the FDIC or any other governmental agency, are subject to risks, including a possible loss of the principal amount invested.
Generally, natural resources investments are more volatile on a daily basis and have higher headline risk than other sectors as they tend to be more sensitive to economic data, political and regulatory events as well as underlying commodity prices. Natural resource investments are influenced by the price of underlying commodities like oil, gas, metals, coal, etc.; several of which trade on various exchanges and have price fluctuations based on short-term dynamics partly driven by demand/supply and also by investment flows. Natural resource investments tend to react more sensitively to global events and economic data than other sectors, whether it is a natural disaster like an earthquake, political upheaval in the Middle East or release of employment data in the U.S. Low priced securities can be very risky and may result in the loss of part or all of your investment. Because of significant volatility, large dealer spreads and very limited market liquidity, typically you will not be able to sell a low priced security immediately back to the dealer at the same price it sold the stock to you. In some cases, the stock may fall quickly in value. Investing in foreign markets may entail greater risks than those normally associated with domestic markets, such as political, currency, economic and market risks. You should carefully consider whether trading in low priced and international securities is suitable for you in light of your circumstances and financial resources. Past performance is no guarantee of future returns. Sprott Global, entities that it controls, family, friends, employees, associates, and others may hold positions in the securities it recommends to clients, and may sell the same at any time.
From the offices of Amir Adnani:
Scott Melbye, our executive VP just returned from the Nuclear Energy Institute Uranium Fuel Conference in Boston. His takeaways are indicative of improving fundamentals that are driving the uranium market:
There was a strong turnout for this conference that focuses solely on nuclear fuel cycle issues. Continuing the trend of recent industry meetings, a number of attendees from the investment community were also present.
Cameco’s care and maintenance of the McArthur River mine was also a leading topic of conversation, particularly their ongoing procurement activity focused on the backfilling of customer contract commitments from open market purchases. While the price is already up over 60% from the 12-year low, they advised their purchasing program is still only in the early stages. They have increased their targeted purchase volumes expecting to buy 1-3 million pounds additionally by years-end and 10-12 million pounds in 2019.
UxC gave an unusually upbeat presentation on the uranium market, titled “Market on the Mend” noting global nuclear energy generation in 2018 has now surpassed the level of global nuclear power output that existed pre-Fukushima. They also stated 2018 has been a key year on the supply side with accelerated rebalancing of fundamentals due to the massive cuts to global production and increased investor purchases of uranium. They added that this was the first time since 2010 that global reactor demand and supplies fell back into balance (and deficit) as a result.
While Enricher underfeeding has contributed to oversupply of the uranium market over the past several years, both Urenco and Tenex confirmed the 20 million lbs. per year source of supply has peaked and is slated to decline. All expansion plans have been scrapped and older centrifuges are being taken off-line and decommissioned. The return of Japanese demand and supplies to other new entrants is contributing to the fuller utilization of existing capacity for enrichment activities and less for uranium creation.
In meetings with most of the utilities present, discussions centered around the Department of Commerce section 232 on foreign imports. This has put off some procurements plans on hold until the outcome is more clear, but the utilities acknowledge that their uncommitted requirements are rising in the coming years and a renewed procurement cycle needs to take place.
Finally, keynote speaker, Michael Shellenberger made a number of compelling arguments for nuclear in the global energy debate:
Over the past 40 years, nuclear energy has been shown to be the safest form of generating electricity, having saved over 1.8 million lives, compared to alternatives.
Nuclear power scaled up over this time to provide 6% of global electricity at a cost of $1.8 trillion, whereas, solar and wind has taken $2 trillion to scale up to provide only 3% of global energy.
Germany, which has increased its share of renewables while phasing out nuclear power, produces 10 times more CO2 per unit of energy than nuclear-heavy France, and German energy is twice as expensive as France’s.
In summary, this was an upbeat conference with a positive tone compared to recent years and encouraging for a continued recovery in the uranium price.
Best,
Amir Amir Adnani | President & CEO URANIUM ENERGY CORP NYSE AMERICAN: UEC | www.uraniumenergy.com
TORONTO, ON / ACCESSWIRE / November 8, 2018 / DNI Metals Inc. (CSE: DNI; OTC PINK: DMNKF) (“DNI” or the “Company”),
Environmental Licenses
DNI has put together all the information needed to properly file the documents for the Vohitsara and Marofody properties. The documents must be signed off by the Director General, “DG”, of the Mines Ministry. These documents are with the DG now.
Vohitsara:
These documents were filed with the Office National pour l’Environnement Madagascar, ONE, in December of 2017, but the proper capex calculation was not completed, and the proper fees were not paid.
As per our environmental impact study and the Cahier de Charges Minieres, DNI will file for the production of 15,000 tonnes of graphite per year. The pilot plant will be capable of 5-6,000 tonnes of graphite per year. When DNI builds its commercial plant, it will not have to re-apply or file additional information. DNI is preparing for the future.
The procedures from the Malagasy Office National Pour L’Environnement, “ONE”, National Environmental Office state the following:
Un permisenvironnemental est délivre par l’ONE à la suite d’une évaluation favorable de l’EIE (pour un délai légal de 60 jours)
Translation: An environmental license will be issued by the ONE following a favorable evaluation of the EIA, legally the ONE must complete this within 60 days.
The ONE will need to visit the properties twice. DNI is hoping to complete this within the 60 days.
OFFICE NATIONAL POUR L’ENVIRONNEMENT
NOTES SUR LES PROCEDURES MECIE (EIE)
Le dossier est dépose, contre accuse de réception, auprès de l’ONE.
Le promoteur contribue aux frais d’évaluation de l’EIE (art. 14 nouveau) selon le niveau de son imiestissement, aux barèmes suivants :
0,5%du montant de l’investissement matériel lorsque celui-ci est inferieur a 2 milliards de ARIARY
2 millions de ARIARY majores de 0,4% du montant de l’investissement matériel lorsque celui-ci est compris entre 2 milliards et 5 milliards de ARIARY
7 millions de ARIARY majores de 0,3% du montant de l’investissement matériel lorsque celui-ci est compris entre 5 milliards et 25 milliards de ARIARY
32 millions de ARIARY majores de 0,2% du montant de l’investissement matériel lorsque celui-ci est compris entre 25 milliards et 50 milliards de ARIARY
82 millions de ARIARY majores de 0,1% du montant de l’investissement matériel lorsque celui-ci est supérieur a 50 milliards de ARIARY
Les frais d’évaluation sont versés par l’investisseur a un compte spécial ouvert à cet effet par l’ONE et acquittes avant toute évaluation environnementale de l’investissement.
Mode de paiement:
Virement bancaire
Remise de chèque : Cheque barre libelle au nom de !’Office National pour I’ Environnement.
Un permisenvironnemental est délivre par l’ONE à la suite d’une évaluation favorable de l’EIE (pour un délai légal de 60 jours)
New Madagascar Team – In Place
Dan Weir, the CEO of DNI, has taken charge of all of DNI’s Madagascar operations which includes, but is not limited to, obtaining the environmental licenses for its Vohitsara and Marofody properties. The new team, which includes inhouse legal counsel, government relations personal, an office manager, and a CSR consultant.
As DNI constructs its pilot plant and ultimately larger scale production, additional team members will be required.
Annual Meeting
DNI has set its annual and special meeting date for December 20, 2018.
The Record date is November 19, 2018.
Resolutions will include:
Election of Directors
Appointment of Auditors
Changing Financial Year End to December 31, to match the Malagasy and Mauritian subsidiary companies.
Continuing DNI as a Canadian company under the Canada Business Corporations Act, from its current domicile as a Quebec company.
As DNI moves towards building its pilot plant and ultimately a commercial plant, Paul Hart and Brian Howlett have decided not to stand for re-election to the Board. DNI will bring additional technical and sales oriented people to the board. Brian and Paul have decided to step down effective today. DNI would like to thank both Brian and Paul for their support, and wish them all the best in their future endeavours.
DNI’s board will consist of the following:
John Carter Director Process Engineer
Mr. Carter is currently the CEO of Northern Sphere Mining. Has over 35 years experience in the metals and mining industries. Mr. Carter specializes in the engineering design and manufacturing of mineral processing equipment for mining operations and operators such as Timcal Inc., currently the largest natural graphite mining company in North America. John has built over 200 mineral processing plants around the world, including 3 graphite processing plants.
Keith Minty Director Mining Engineer, MBA
Keith has more than 30 years professional experience in mineral resource exploration and development in precious and base metals, industrial minerals. Mr. Minty obtained extensive graphite technical and operating experience at both North Coast Industries (now Northern Graphite Corporation) Bissett Creek Graphite and Cal Graphite Corporation (now Ontario Graphite Inc.) Kearney graphite mine and has experience of in the development of several past and new Sri Lanka graphite projects. Mr. Minty has had the opportunity of conducting Madagascar precious metals project valuations and is knowledgeable of the political and social requirements associated with Madagascar project development and operations.
Daniel J. Weir Chairman CEO, President
Dan has worked for over 20 years at some of the top financial firms in Canada. He worked as an Institutional Equity Trader, and as a broker he managed over $500 million. Before joining DNI in November 2014, he was the Head of Institutional Sales at a boutique firm focused on financing Mining companies. Having raised millions of dollars, both publicly and privately, Mr. Weir has expertise at evaluating and financing mining deals. Dan has managed large high tech electrical and energy management projects, having owned his own electrical management firm. Dan graduated from the University of Toronto.
Dan has the skills to not only build and manage a graphite processing plant, but also the needed skills to fund, promote, and market graphite products.
This press release contains forward-looking statements, including statements that relate to, among other things, the following: (i) the geological characteristics of the projects; (ii) the potential to discover additional mineralization and to extend the area of mineralization; (iii) the potential to raise additional financing; and (iv) the potential to expand and upgrade the resource estimate of the projects. Forward-looking information is subject to the risks, uncertainties and other important factors that could cause the Company’s actual performance to differ materially from that expressed in or implied by such statements. Such factors include, but are not limited to volatility and sensitivity to market metal prices, impact of change in foreign exchange rates, interest rates, imprecision in resource estimates, imprecision in opinions on geology, environmental risks including increased regulatory burdens, unexpected geological conditions, adverse mining conditions, changes in government regulations and policies, including laws and policies; and failure to obtain necessary permits and approvals from government authorities, and other development and operating risks, and can generally be identified by the use of words such as “may”, “will”, “could”, “should”, “would”, “likely”, “possible”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “plan”, “objective”, “hope” and “continue” (or the negative thereof) and words and expressions of similar import. Although DNI believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Additional information about material factors that could cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found in the Company’s most recent annual and interim Management’s Discussion and Analysis under “Risk and Uncertainties” as well as in other public disclosure documents filed with Canadian securities regulatory authorities. Forward-looking statements are provided for the purpose of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. The Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements contained in this document, whether as a result of new information, future events or otherwise, except as required by law.
VANCOUVER, British Columbia (AP) _ NexGen Energy Ltd. (NXE) on Tuesday reported a loss of $14.7 million in its third quarter.
The Vancouver, British Columbia-based company said it had a loss of 5 cents per share.
The company’s shares closed at $2.34. A year ago, they were trading at $1.96.
_____
This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on NXE at https://www.zacks.com/ap/NXE
Rich Dad , Robert T.Kiyosaki latest video about why we should invest commodities such as oil, gold, silver and other precious resources. Here in this video, Robert talks more on the reason why invest in oil as a long term financial success and how you can do it too in support with Rich Dad advisor , Tom Wheelright. Feel free to share the information worldwide and let them be educate by the financial education from Rich Dad.
Click here for the complete press release. Stefan Axell
Director, Corporate Affairs
416-306-6328 info@franco-nevada.com Sandip Rana
Chief Financial Officer
416-306-6303
JERICHO OIL
The Rodney Dangerfield of the Junior Oil & Gas Sector
In my humble opinion… Jericho Oil (JCO) is one of the least respected and most misunderstood companies in the Junior Oil & Gas Sector. Let’s learn and have a few laughs along the way.
I asked my old man if I could go ice skating on the lake. He told me wait till it gets warmer.
A barrel of Crude Oil a few years ago was cheaper than a bucket of Kentucky Fried Chicken. I kid you not!!! Those days are over. Oil has more than doubled and is hovering around $65. This means ever increasing profits in upcoming quarters, which should significantly boost share price.
I TELL YA THEY GET NO RESPECT!!!
I told my doctor I swallowed a bottle of sleeping pills. He told me to have a few drinks and get some rest.
Jericho Oil’s share price is CAD 52 cents, almost at its 52-week low and off over 60% from its yearly high. With oil prices rising significantly this year… something is definitely wrong with this picture.
I TELL YA THEY GET NO RESPECT!!
This morning when I put on my underwear, I could hear the Fruit of the Loom guys laughing at me.
Invest with the smart money…Jericho has world-class, patient shareholders (cornerstone investors include the Breen [Ed Breen, CEO, DowDuPont] and Belzberg families…(google them, very savvy investors and business titans). They got in at the company’s inception and provided all important strong equity financing support during the lean years 2015-2017 when others were fleeing the market. Follow the smart money. Money begets money !!!
I TELL YA – HE GETS NO RESPECT!!!
My wife made me join the Bridge Club … I jump off next Tuesday.
The stock is very tightly held…JCO insiders hold ≈ 46% of the 128 Million of the issued and outstanding shares. The top 10 investors own ≈ 70% of the company and are in it to win it !!!
I TELL YA – HE GETS NO RESPECT!!!
I could tell my parents hated me. My bath toys were a toaster and a radio.
Jericho with zero net debt, JCO had the cash and foresight during the downturn to acquire a very high-quality portfolio of assets from distressed sellers… at the bottom of the market. Today JCO owns and operates ≈55,000 net acres in Oklahoma… including an interest in ≈16,000 in the prolific STACK Play, which was acquired well below the current market prices.
I TELL YOU THIS COMPANY GETS NO RESPECT!!!
I looked up my family tree and found 3 dogs using it.
JCO is laser focused. Its assets are all within close radius in Oklahoma Basin and its team of experts are all based locally, which will keep costs down significantly as the company grows.
Last week I told my psychiatrist “I keep thinking about suicide”. He told me from now on you have to pay in advance.
Jericho Oil operates in a very pro-oil, pro-growth jurisdiction—Oklahoma is ranked as one of the top 2 jurisdictions globally for oil and gas investment (source: Fraser Institute). As Texas oil fields dry up the smart money is heading north to Oklahoma.
I TELL YA – WE GET NO RESPECT!!!
What a childhood I had, when I took my first steps my old man tripped me.
Oil is here to stay- Elon Musk and his exploding cars assures that? The World runs on Oil and JCO has it in spades. Oil is the lubricant that keeps the World Economy humming. Problems in Venezuela and many Middle Eastern nations assure the prosperity and popularity of US Crude Oil and any company with land packages in oil rich Mid -America will thrive for years to come.
I TELL YA THIS COMPANY GETS NO RESPECT!!!
My wife and I were happy for 20 years. Then we met!!!
Management is young, experienced and most importantly extremely business savvy as witnessed by the scooping up of tremendous assets at fire sale prices. CEO Brian Williamson sheepishly proclaimed “Never let a good crisis go to waste.” That my friends and fellow investors, is how fortunes are made !!!
In closing … I hope his article made you smile and perhaps laugh out loud. Trust me – I’m serious as a heart attack when I say this investment game is really no laughing matter. We have been through close to 15 years of a bull market in Tech and Fortune-100 stocks. It is high time to position yourself in high quality junior resource stocks which should boom when money flows into this neglected sector. It sure seems the Dow Jones bull is on its last legs and ran its course.
While I am relatively new to the Oil and Gas sector after years investing in Gold and Silver Miners. The same investment principles hold true. Buy Low…Sell High. Sounds simple but 90% of investors can’t seem to embrace that concept. You must be a contrarian investor and seek out the unloved and undervalued companies. The cream always rises to the top… In my humble opinion Jericho Oil fits this to a tee.
Oklahoma is nicknamed the “Sooner State”. I suggest you get into JCO sooner than later ?. Jesse Livermore considered the greatest stock trader of all-time wisely advised “Buy Right & Sit Tight”.
Symbol JCO- Can
JROOF- OTC
Share Price 52 cents Can
Market Cap $ 67 Million
Shares Outstanding 128 M
52 week Low/High .49-$1.38
VANCOUVER, Nov. 5, 2018 /PRNewswire/ – NexGen Energy Ltd. (“NexGen” or the “Company”) (TSX:NXE, NYSE:NXE) is pleased to announce the results of an independent Pre-Feasibility Study (“PFS” or the “Study”) and Mineral Resource update of the basement-hosted Arrow Deposit, located on the Company’s 100% owned Rook I project (“Arrow” or the “Project”) in the Athabasca Basin in Saskatchewan, Canada. The PFS was completed jointly by Wood Group, and Roscoe Postle Associates Inc. (“RPA”), with other technical inputs completed by sub-consultants.
Pre-Feasibility Study Highlights
Table 1 – Summary of Arrow Deposit Pre-Feasibility Study (based on US $50/lb U3O8)
PEA (July 31, 2017)
PFS
Variance
After-Tax Net Present Value (8% discount)
CAD $3.49 Billion
CAD $3.7 Billion
+6%
After-Tax Internal Rate of Return (IRR)
56.7%
56.8%
–
After-Tax Payback
1.1 Years
1.2 Years
+9%
Initial Capital Costs (“CAPEX”)
CAD $1.19 Billion
CAD $1.25 Billion
+5%
Average Annual Production (Life of Mine)
18.5 M lbs U3O8
25.4 M lbs U3O8
+37%
Average Annual Production (Years 1-5)
27.6 M lbs U3O8
29.0 M lbs U3O8
+5%
Average Daily Throughput
1,448 tonnes per day
1,039 tonnes per day
-28%
Average Annual Grade
1.73% U3O8
3.09% U3O8
+79%
Mine Life
15 Years
9 Years
-6 years
Average Annual After -Tax Net Cash Flow
(Life of Mine)
CAD $553 Million
CAD $909 Million
+64%
Average Annual Operating Cost (“OPEX”,
Life of Mine)
CAD $8.37
(US $6.70)/lb U3O8
CAD $ 5.81
(US $4.36)/lb U3O8
-31%
Operating Margins (Life of Mine)
85.5%
90.6%
+6%
Note:PEA based on CAD $1.00 = US $0.80, PFS based on CAD $1.00 = US $0.75
CAPEX – Increased due to the introduction of Provincial Sales Tax (PST) applicable to capital projects. Excluding PST, initial capital costs reduced by approximately CAD $64 Million to CAD $1.18 Billion (0.5% lower than PEA). Additionally, due to the reallocation of tailings management to operating costs, the sustaining capital component of capital expenditures has been significantly reduced.
Mine Life – PFS is based on Indicated Resources only and does not include the current additional Inferred Resources 91.70 M lbs of U3O8 contained in 4.84 M tonnes grading 0.86% U3O8 or further potential increases in the resource base at Arrow that remains open in many directions (Figure 1).
Leigh Curyer, Chief Executive Officer, commented: “An assessment across all of the PFS metrics, results in a substantial improvement to the PEA with a 64% increase in average annual after tax net cash flow. Incorporating only the Indicated Mineral Resource, the life of mine drops from 15 to 9 years, yet the increase in average annual grade – whilst maintaining a consistent capex and lower opex – results in an after tax NPV of $3.7BN. In addition, the 43% increase in Indicated Mineral Resource growth during 2017 demonstrates with closer spaced drilling, Arrow improves and optimizes mine production plans.
With these strong PFS results, the Company is expediting Arrow to Feasibility by initiating a 2 stage 125,000m (10 rig) high density drilling program. This will be the largest drilling, geotechnical and hydrogeological focused program in the history of NexGen. Preparations are well underway with the program brought forward and scheduled to commence in early December 2018.
I would like to take the opportunity to congratulate the entire NexGen team, key consultants, local communities and Government departments for their outstanding commitment and execution of Arrow’s development.”
Conference Call
NexGen will host a conference call today, Monday November 5, 2018 at 11.00 AM Eastern Standard Time.
To join the call please dial (+1) 416 764 8688 (local/international) or (+1) 888 390 0546 (North America toll free) with passcode 49399985 and an operator will assist.
A recorded version of the proceedings will be available on NexGen’s website (www.nexgenenergy.ca) shortly after the conference. The playback numbers are (+1) 416 764 8677 (local/international) and (+1) 888 390 0541 (North America toll free) and the playback passcode is 399985 #. The playback will be available until Tuesday, February 05, 2019.
Table 2 – PFS Sensitivity to Uranium Price
Uranium Price ($ USD/lb U3O8)
After-Tax NPV8
After-Tax IRR
After-Tax Cash Pay Back
$80/lb U3O8
CAD $6.62 Billion
80.4%
0.8 Years
$60/lb U3O8
CAD $4.65 Billion
65.5%
1.0 Years
$50/lb U3O8
CAD $3.66 Billion
56.8%
1.2 Years
$40/lb U3O8
CAD $2.67 Billion
46.9%
1.5 Years
$30/lb U3O8
CAD $1.69 Billion
35.6%
1.9 Years
$25/lb U3O8
CAD $1.19 Billion
28.9%
2.3 Years
Key Updates of the 2018 PFS from the 2017 PEA
Reduction in CAPEX due to a reduced mine footprint as a result of higher head grades and also the reallocation of the underground tailings to operating costs. If the recently introduced PST is ignored for an apples-to-apples comparison on capital cost estimates from the PEA to the PFS, the PFS capital cost would be even lower.
31% reduction in average annual OPEX to CAD $5.81/lb U3O8(from CAD $8.37/lb U3O8) despite the PFS recategorizing the underground tailings to OPEX instead of sustaining capital as per the PEA. These costs account for 21% of OPEX.
43% increase in Indicated Mineral Resources from 179.5 M lb of U3O8 contained in 1.18 M tonnes grading 6.88% U3O8 from the March 2017 Mineral Resource estimate to 256.6 M lbs of U3O8 contained in 2.89 M tonnes grading 4.03% U3O8.
Average Annual Production increase from 18.5 M lbs U308 in the PEA to 25.4M lbs U308 due to higher head grades increasing from 1.73% U308 in the PEA to 3.09 % U3O8 in the PFS.
Average mining rate decrease from 1,448 tonnes per day to 1,039 tonnes per day.
Metallurgical pilot plant and bench scale testing optimized recovery resulting in increased total processing recovery rate to 97.6% versus 96.0% in the PEA.
Metallurgical process was updated resulting in ammonia being eliminated entirely from the process which strengthens the environmental performance of the envisioned Rook I Project.
Metallurgical paste-fill test work confirmed proof of concept for uranium tailings to be used for cemented paste backfill underground.
Lateral development reduced from 78,805 metres to 39,908 meters due to a reduced mine footprint.
Vertical development was reduced from 3,832 in the PEA to 3,059 due to the elimination of a fresh air raise which has been redesigned and combined with the primary production shaft.
Mineral Resources
The Arrow Deposit Mineral Resource estimate was updated, and the Indicated Mineral Resources form the basis for the PFS. The Indicated portion of the resource has increased by 43% from the previous resource estimate (see News Release dated: March 6, 2017). The updated estimate comprises an Indicated Mineral Resource of 256.6 M lbs of U3O8 contained in 2.89 M tonnes grading 4.03% U3O8, including the A2 High Grade Core of 181.0 M lbs of U3O8 contained in 0.46 M tonnes grading 17.85% U3O8 and an Inferred Mineral Resource of 91.7 M lbs of U3O8 contained in 4.84 M tonnes grading 0.86% U3O8.
The tonnes, grades, and classification of the Mineral Reserves defined in the PFS mine design are summarized below in Table 4.
Table 3 – Arrow Mineral Resource Estimate
March 2017 Arrow Mineral Resource Estimate
2018 Arrow Mineral Resource Estimate
Diff. Between Arrow 2018 & 2017 Mineral Resource Estimate
Structure
Tonnage (Tonnes)
Grade (U3O8%)
Metal
U3O8
(U3O8 lb)
Tonnage (Tonnes)
Grade (U3O8%)
Metal U3O8 (U3O8 lb)
Tonnage (Tonnes)
Grade (U3O8%)
Metal
U3O8
(U3O8 lb)
Indicated Mineral Resources
A2
790,000
0.84
14,500,000
1,240,000
0.79
21,700,000
450,000
(0.05)
7,200,000
A2 HG
400,000
18.87
164,900,000
460,000
17.85
181,000,000
60,000
(1.02)
16,100,000
A3
No Indicated in 2017
1,010,000
0.70
15,500,000
1,010,000
0.70
15,500,000
A3 HG
No Indicated in 2017
180,000
9.68
38,400,000
180,000
9.68
38,400,000
Total:
1,180,000
6.88
179,500,000
2,890,000
4.03
256,600,000
1,700,000
(2.85)
77,200,000
Inferred Mineral Resources
A1
860,000
0.75
14,300,000
1,510,000
0.72
23,900,000
650,000
(0.04)
9,600,000
A2
1,100,000
0.76
18,500,000
1,290,000
0.70
19,900,000
190,000
(0.06)
1,400,000
A2 HG
30,000
13.00
8,600,000
5,000
12.70
1,400,000
(25,000)
(0.30)
(7,200,000)
A3
1,460,000
1.16
37,300,000
1,230,000
1.11
30,000,000
(230,000)
(0.05)
(7,300,000)
A3 HG
150,000
8.53
28,200,000
1,000
9.07
200,000
(149,000)
0.54
(28,000,000)
A4
550,000
1.06
12,900,000
800,000
0.92
16,300,000
250,000
(0.14)
3,400,000
180
110,000
0.95
2,300,000
Combined into A3 & A4
(110,000)
(0.95)
(2,300,000)
Total:
4,260,000
1.30
122,100,000
4,840,000
0.86
91,700,000
580,000
(0.44)
(30,400,000)
Notes:
1.
CIM Definition Standards were followed for Mineral Resources, Mineral Resources are reported inclusive of Mineral Reserves.
2.
Mineral Resources are reported at a cut-off grade of 0.25% U3O8 based on a long-term price of US$50 per lb U3O8and estimated costs.
3.
A minimum mining width of 1.0 m was used, with a Mineral Resource effective date of May 25th, 2018.
4.
Numbers may not add due to rounding.
5.
Mineral Resources that are not Mineral Reserves do not have demonstrated economics.
Mineral Reserves
The PFS defines Probable Mineral Reserves of 234.1 M lbs of U3O8 contained in 3.43 Mtonnes grading 3.09% U3O8 from the Indicated Mineral Resources. The Probable Mineral Reserves include diluting materials and allowances for losses which may occur when material is mined.
Table 4 – Arrow Probable Mineral Reserves
Probable Mineral Reserves
Structure
Tonnage (Tonnes)
Grade (U3O8%)
Metal U3O8 (U3O8 lb)
A2
2,057,600
4.13%
187,400,000
A3
1,375,500
1.54%
46,700,000
Total
3,433,100
3.09%
234,100,000
Notes:
1.
CIM definitions were followed for Mineral Reserves.
2.
Mineral Reserves are reported with an effective date of May 25, 2018.
3.
Mineral Reserves include transverse and longitudinal stopes, ore development, and incremental ore.
4.
Stopes and ore development were estimated at a cut-off grade of 0.25% U3O8.
5.
Incremental ore is material between 0.03% U3O8 and 0.25% U3O8 that must be extracted to access mining areas. 0.03% U3O8 is the limit for what is considered benign waste and material that must be treated and stockpiled in an engineered facility.
6.
No by-product credits have been included in the Mineral Reserve statement.
7.
Mineral Reserves are estimated using a long-term metal price of US$45 per pound U3O8, and a 0.75 US$/C$ exchange rate (C$1.00 = US$0.75).
8.
A minimum mining width of 3.0 m was applied for all longhole stopes.
9.
The density varies according to the U3O8 grade in the block model. Waste density is 2.464 t/m3.
10.
Numbers may not add due to rounding.
RPA is not aware of any environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant factors that could materially affect the Mineral Resource or Mineral Reserve estimates.
Mine Plan and Production Profile
A detailed mine plan based on conventional long-hole stope mining was engineered using Indicated Mineral Resources only. Geotechnical studies during Pre-Feasibility supported the conventional longhole stoping mining method including the use of longitudinal and transverse stopes, 30 m level spacing, and the nominal stope strike length of 15 metres to 30 metres. This represents an excellent stope stability range for underground mining in highly competent conditions. The geometry of the Arrow Deposit enables decoupled production areas in both the A2 and A3, allowing flexibility of mine sequencing. The PFS production profile is underpinned by longhole stopes in the transverse orientation through A2 High Grade mineralization. Arcadis was engaged in the modeling and assessment of radiological effects of underground uranium mining, and they fully endorsed the proposed mining methods and overall plans. The ability to mine transverse longhole stopes through the A2 High Grade will support significant scheduling flexibility enabling NexGen to correlate supply quickly and inexpensively to market conditions.
Furthermore, given the competency and conditions of the underground environment, all waste streams from the process plant are planned to be stored underground.
The PFS mine plan, using a 0.25% U3O8 cut-off grade, includes Probable Mineral Reserves consisting of 234.1 M lbs of U3O8 contained in 3.43 M tonnes grading 3.09% U3O8 that will be extracted by underground mining in an initial nine (9) year mine life. The mine production schedule envisions a life of mine rate of 1,039 tonnes per day. The underground workings will be accessed by two shafts, the first supporting personnel movements, materials, ore, waste and fresh air. The production shaft will have divided compartments, ensuring that fresh air, and personnel entering the mine, remain isolated from ore being skipped to surface. The second shaft will be used for exhaust air and secondary egress. Mining extraction is estimated to be 95% of mineralized tonnes for both ore development and stopes. Planned dilution was included in the generation of the stope shapes, and additional backfill dilution (at zero grade) was included where appropriate. Overall rock dilution is estimated to be 31%, with additional backfill dilution applied on secondary stopes only. Figure 3 below presents the annual mining schedule based on set assumptions.
Processing and Underground Tailings Management Facility (“UGTMF”)
The PFS confirmed processing and production of Yellowcake from the Arrow Deposit with conventional processing technology. The main components of the processing plant are:
Grinding
Leaching
Liquid-Solid Separation via Counter Current Decantation
Solvent Extraction
Yellowcake Precipitation
Yellowcake Packaging
Paste Tailings Plant
A detailed metallurgical study resulted in process recovery increasing to 97.6% (versus 96% in the PEA). In addition, the ammonia strip process envisioned in the PEA was updated to an acid strip process in the PFS, resulting in the complete elimination of ammonia in the processing facility. Elimination of ammonia from the processing facility will ultimately lead to improved effluent discharge performance.
The Study also confirmed that all processed waste streams can be stored in an Underground Tailings Management Facility (“UGTMF”). The Study also confirmed the geotechnical design, size and sequencing of the UGTMF included in the PFS mine plan. The UGTMF will significantly reduce the surface footprint of the Project and represents continued and ongoing reclamation during operations, allowing for industry leading environmental sensitivity.
PFS test work confirmed paste fill strength meets or exceeds all requirements set in the original design for a potential Paste-Backfill to be used for underground stope stability. The Study confirmed the suitability of the tailings from Arrow Uranium Deposit for use as cemented paste backfill.
NexGen is committed to advancing the Project with innovative approaches to mine design, management and operation in order to deliver enhanced environmental, social and economic performance.
Capital Costs
A capital cost estimate (Class 4 – AACE International classification guidelines) was produced for the PFS. The pre-production CAPEX for the contemplated underground mine, process plant and supporting infrastructure at Arrow are estimated at CAD $1.247 billion with sustaining capital costs of CAD $262 million (including $48 Million for decommissioning). Wood and RPA estimated the capital costs based on a three-dimensional civil model, a mechanical equipment list, material takeoffs, vendor budget quotations on major and secondary equipment, and inputs from leading expert service providers who have experience in construction projects and cost estimation both in the Athabasca Basin and globally. Pre-production construction is envisioned to be complete in three (3) years, the construction phase will be supported by a labour force consisting of skilled labour, trades people, professionals and administration. The Study determined the total personnel hours required for pre-production construction is 3,557,000 hours. The CAPEX is summarized below in Table 5.
Table 5 – Summary of Capital Cost Estimates
PEA 2017
PFS 2018
Capital Cost Estimates ($ CAD Millions)
Pre-Production
Sustaining
Total
Pre-Production
Sustaining
Total
Variance
Mine
324
205
529
303
194
497
-6%
Process Plant, Infrastructure & Indirects
627
199
826
736
20
756
-9%
Decommissioning
0
64
64
0
48
48
-25%
Contingency
237
0
237
208
0
208
-12%
Total Capital Costs
1,188
468
1,656
1,247
262
1,509
-9%
Notes on Variances
Mine – Reduced mining extents due to increase in mining head grades as a result using Indicated Resources only.
Process Plant, Infrastructure & Indirects -Tailings management costs re-allocated to operating costs.
Decommissioning – Higher resolution on decommissioning costs.
Contingency – Increased confidence level of cost estimates.
Operating Costs
The OPEX estimate outperformed the PEA and is based on a shaft-accessed underground mine with a conventional longitudinal and transverse long-hole stope mining method, conventional processing facility and underground processed waste management facility. While in operation the PFS defines a required workforce of 491 persons, the expertise required ranges from skilled labour, equipment operators, mining professionals, technical professional, management and administrative. NexGen’s community-first approach ensures opportunities are prioritized within the local region. The OPEX is summarized below in Tables 6 and 8, and the per unit all-in sustaining cost is summarized in Table 7.
As of September 30, 2018, the Company had $133 million in the treasury which fully funds NexGen for the the upcoming and planned programs.
Immediate initiation of a 10 rig diamond drilling 2 stage program of 125,000 m focusing on conversion of Arrow Indicated Mineral Resources to Measured of 70,000 m aimed at conversion of Inferred to Indicated Mineral Resources; and 55,000 m to enable additional optimisation of mine production plans.
Continued UGTMF study to optimise tailings density and further reduce tailings volume.
The capital costs associated with the process plant and associated infrastructure will now undergo an evaluation to review opportunities for capital cost optimization.
Project schedule and timeline are also being reviewed to identify opportunities to advance the development.
Automation and electric mining equipment continue to evolve rapidly, and opportunities for inclusion are currently being pursued.
Detailed evaluation of alternative energy solutions which will further offset electricity costs and support NexGen’s environmental initiatives.
About NexGen
NexGen is a British Columbia corporation with a focus on the acquisition, exploration and development of Canadian uranium projects. NexGen has a highly experienced team of uranium industry professionals with a successful track record in the discovery of uranium deposits and in developing projects through discovery to production. NexGen owns a portfolio of prospective uranium exploration assets in the Athabasca Basin, Saskatchewan, Canada, including a 100% interest in Rook I, location of the Arrow Deposit in February 2014, the Bow discovery in March 2015, the Harpoon discovery in August 2016 and the Arrow South discovery in July 2017.
Technical Disclosure
The technical information in this news release with respect to the PFS has been reviewed and approved by Paul O’Hara, P.Eng. of Wood., David Robson, P.Eng., M.B.A., and Jason Cox, P.Eng. of RPA, each of whom is a “qualified person” under National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI-43-101“).
The Mineral Resource Estimate was completed by Mr. Mark Mathisen, C.P.G., Senior Geologist at RPA and Mr. David Ross, P.Geo., Director of Resource Estimation and Principal Geologist at RPA. Both are independent Qualified Persons in accordance with the requirements of National Instrument (NI) 43-101 and they have approved the disclosure herein. All other technical information in this news release has been approved by Mr. Troy Boisjoli, Geoscientist Licensee, Vice President – Operations & Project Development for NexGen. Mr. Boisjoli is a qualified person for the purposes of NI 43-101 and has verified the sampling, analytical, and test data underlying the information or opinions contained herein by reviewing original data certificates and monitoring all of the data collection protocols.
A technical report in respect of the PFS will be filed on SEDAR (www.sedar.com) and EDGAR (www.sec.gov/edgar.shtml) within 45 days of this news release.
SEC Standards
Estimates of mineralization and other technical information included or referenced in this news release have been prepared in accordance with NI 43-101. The definitions of proven and probable mineral reserves used in NI 43-101 differ from the definitions in SEC Industry Guide 7. Under SEC Industry Guide 7 standards, a “final” or “bankable” feasibility study is required to report reserves, the three-year historical average price is used in any reserve or cash flow analysis to designate reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority. As a result, the reserves reported by the Company in accordance with NI 43-101 may not qualify as “reserves” under SEC standards. In addition, the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are defined in and required to be disclosed by NI 43-101; however, these terms are not defined terms under SEC Industry Guide 7 and normally are not permitted to be used in reports and registration statements filed with the SEC. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian securities laws, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. Additionally, disclosure of “contained pounds” in a resource is permitted disclosure under Canadian securities laws; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC standards as in place tonnage and grade without reference to unit measurements. Accordingly, information contained or referenced in this news release containing descriptions of the Company’s mineral deposits may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements of United Statesfederal securities laws and the rules and regulations thereunder.
Technical Information
For details of the Rook I Project including the quality assurance program and quality control measures applied and key assumptions, parameters and methods used to estimate the Mineral Resource please refer to the technical report entitled “Technical Report on the Preliminary Economic Assessment of the Arrow Deposit, Rook 1 Property, Province of Saskatchewan, Canada” dated effective September 1, 2017 (the “Rook 1 Technical Report”) prepared by Jason J. Cox, P.Eng., David M. Robson, P.Eng., M.B.A., Mark B. Mathisen, C.P.G., David A. Ross M.Sc., P.Geo., Val Coetzee, M.Eng., Pr.Eng., and Mark Wittrup, M.Sc., P.Eng.,P.Geo. each of whom is a “qualified person” under NI 43-101. The Rook I Technical Report is available for review under the Company’s profile on SEDAR at www.sedar.com. A technical report in respect of the PFS will be filed on SEDAR (www.sedar.com) and EDGAR (www.sec.gov/edgar.shtml) within 45 days of this news release providing details of the Rook I Project including the quality assurance program and quality control measures applied and key assumptions, parameters and methods used to estimate the Mineral Resource.
Forward-Looking Information
The information contained herein contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation. “Forward-looking information” includes, but is not limited to, statements with respect to the activities, events or developments that the Company expects or anticipates will or may occur in the future. Generally, but not always, forward-looking information and statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative connotation thereof.
Forward-looking information and statements are based on the then current expectations, beliefs, assumptions, estimates and forecasts about NexGen’s business and the industry and markets in which it operates. Forward-looking information and statements are made based upon numerous assumptions, including among others, that the proposed transaction will be completed, the results of planned exploration activities are as anticipated, the price of uranium, the cost of planned exploration activities, that financing will be available if and when needed and on reasonable terms, that third party contractors, equipment, supplies and governmental and other approvals required to conduct NexGen’s planned exploration activities will be available on reasonable terms and in a timely manner and that general business and economic conditions will not change in a material adverse manner. Although the assumptions made by the Company in providing forward looking information or making forward looking statements are considered reasonable by management at the time, there can be no assurance that such assumptions will prove to be accurate.
Forward-looking information and statements also involve known and unknown risks and uncertainties and other factors, which may cause actual results, performances and achievements of NexGen to differ materially from any projections of results, performances and achievements of NexGen expressed or implied by such forward-looking information or statements, including, among others, negative operating cash flow and dependence on third party financing, uncertainty of the availability of additional financing, the risk that pending assay results will not confirm previously announced preliminary results, imprecision of mineral resource estimates, the appeal of alternate sources of energy and sustained low uranium prices, aboriginal title and consultation issues, exploration risks, reliance upon key management and other personnel, deficiencies in the Company’s title to its properties, uninsurable risks, failure to manage conflicts of interest, failure to obtain or maintain required permits and licenses, changes in laws, regulations and policy, competition for resources and financing, and other factors discussed or referred to in the Company’s Annual Information Form dated March 31, 2017 under “Risk Factors”.
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information or implied by forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended.
There can be no assurance that forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company undertakes no obligation to update or reissue forward-looking information as a result of new information or events except as required by applicable securities laws.
Micro-cap oil explorer/producer Jericho Oil (TSX-V:JCO, OTC: JROOF) has spent the last three years assembling an impressive package of oil producing assets in Oklahoma. Jericho boasts a portfolio consisting of ~55,000 net acres in one of the hottest basins in the United States, including an interest in ~16,000 net acres in the STACK Play, one of the world’s top resource plays for horizontal development. While Jericho’s portfolio churns out nearly 1,000 barrels/day of oil production it’s the potential for growth through exploration where the real upside for Jericho shareholders exists.
In 2018 Jericho has been exploring more aggressively on its properties including drilling 3 STACK wells. Recently Jericho has begun talking about what it calls its “hidden gem”; Jericho’s “Osage Extension” play in northeast Oklahoma has company management very excited about the next few months. The Osage Extension is listed 3rd in Jericho’s “playbook” (its list of assets), however, this hidden gem could deliver substantial upside. Jericho has been studying the Osage Extension from a geological standpoint for many months and they are finally ready to drill it. Because the holes in the Osage Extension are shallower it will be cheaper to drill (sub-$3 million) than the STACK wells that Jericho has already completed this year.
Jericho feels that there is at least as much upside on its Osage Extension play and they will be tapping into this upside for roughly ½ the drilling cost of the STACK. The market has been focusing on Jericho’s STACK property package for much of 2018 and I believe most investors have forgotten about this hidden gem in the Osage Extension – it’s not something that Jericho has talked about a lot (because they were working to get a better understanding of it) and it’s not something which Jericho gives itself much reserve value for. That could change drastically over the next several months after Jericho begins drilling its hidden gem by the end of November.
The way to build a big oil company is through drilling and production growth. After spending 2 ½ years building a valuable portfolio of oil assets in Oklahoma (when oil prices were much lower than today’s US$67/barrel), Jericho is committed to unleashing the potential that these assets hold. JCO has begun to tap into this potential with its STACK wells and now the Osage Extension is next.
Jericho shares have strong support in the C$.50-$.55 area which roughly correlates to a US$50 million market cap (JCO has 128.6 million shares outstanding [~46% held by insiders]):
JCO.V (Daily)
As Jericho progresses with its growth plans I expect to see a move back up to the next area of resistance near C$.75 (almost 50% above current levels) followed by a rally back to all-time highs (C$1.38) reached earlier this year after Jericho announced initial results from its first STACK well.
The market loves exploration news, especially exploration news that indicates production growth. Jericho’s hidden gem might be about to deliver just what the market wants. Shrewd investors have the opportunity to use the recent market weakness which has resulted from a tumultuous broader market environment to pick up Jericho shares at support just before Jericho begins drilling its hidden gem.
Disclaimer
The article is for informational purposes only and is neither a solicitation for the purchase of securities nor an offer of securities. Readers of the article are expressly cautioned to seek the advice of a registered investment advisor and other professional advisors, as applicable, regarding the appropriateness of investing in any securities or any investment strategies, including those discussed above. Jericho Oil Corp. is a high-risk venture stock and not suitable for most investors.. Consult Jericho Oil Corp’s SEDAR profile for important risk disclosures.
EnergyandGold has been compensated to cover Jericho Oil Corp. and so some information may be biased. EnergyandGold.com, EnergyandGold Publishing LTD, its writers and principals are not registered investment advisors and advice you to do your own due diligence with a licensed investment advisor prior to making any investment decisions.
This article contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). Certain information contained herein constitutes “forward-looking information” under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “expects”, “believes”, “aims to”, “plans to” or “intends to” or variations of such words and phrases or statements that certain actions, events or results “will” occur. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed by such forward-looking statements or forward-looking information, standard transaction risks; impact of the transaction on the parties; and risks relating to financings; regulatory approvals; foreign country operations and volatile share prices. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Actual results may differ materially from those currently anticipated in such statements. The views expressed in this publication and on the EnergyandGold website do not necessarily reflect the views of Energy and Gold Publishing LTD, publisher of EnergyandGold.com. Accordingly, readers should not place undue reliance on forward-looking statements and forward looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on www.SEDAR.com for important risk disclosures. It’s your money and your responsibility.
