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ENERGY AND GOLD | This Oil Junior Is About To Tap Into Its Hidden Gem

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.
admin | October 31, 2018 at 12:56 pm | Tags: JCO.V, Jericho Oil, oil, Oklahoma | Categories:Jericho Oil, oil, oil stocks, Oklahoma | URL: https://wp.me/p5NpYR-2dP
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Energy Oil & Gas

Oil & GAS | Oil Companies Ditch Permian for Oklahoma Plays

Original Source: https://energyandresourcesdigest.com/oil-companies-ditch-permian-oklahoma-plays-nfx-eog-scoop-stack-merge-score/
If you follow the oil markets as I do, you might have heard that the Permian Basin in West Texas is the most prolific oil basin in the U.S. But the Permian has a big problem.
Producers are unable to get any more oil out.
Yes, there’s plenty more oil there. But the Permian has run out of takeaway pipeline capacity.
New pipeline projects won’t be ready until 2020. That means producers have had to severely discount their Permian crude destined for Gulf Coast refineries. For instance, on September 4, WTI Midland oil traded a discount of $23.95 per barrel to Magellan East Houston oil.
Those discounts come right off of a producer’s bottom-line profits. If you’re an investor, think of it as coming right off of your share price.
Oklahoma producers don’t have those problems. Sooner State exploration and production companies are laughing all the way to Cushing, Oklahoma.
Today there are several major oil plays in Oklahoma, referred to as the SCOOP, STACK, SCORE and Merge plays.
The STACK play acronym comes from the Sooner Trend oil field, Anadarko Basin, and Canadian and Kingfisher counties. Unlike the Granite Wash, Eagle Ford or Bakken, STACK isn’t a geological formation but a geographic area.
The SCOOP (South Central Oklahoma Oil Province) play is a geological formation. It’s also located in the Anadarko Basin.
The SCORE (Sycamore, Caney, Osage Resource Expansion) play is the sole idea of Newfield Exploration. Steve Campbell, a senior VP at Newfield, said Newfield was currently leasing 350,000 acres in the Anadarko Basin.
“It is the equivalent of 1 million net effective acres when all the multiple stacked horizons are considered,” he said. Newfield plans to invest $365 million to further delineate its SCORE acreage and different play levels.
Lastly, the Merge play is where STACK and SCOOP come together – hence “merge.”

Pipelines in the Right Places

Unlike West Texas’ pipeline-limited Permian, Oklahoma pipeline companies are staying ahead of producer capacity demand. They are doing this in the face of initial production rates that are similar to those in the Eagle Ford and Permian plays.
Since 2013, Oklahoma producers have invested in higher production well completions. They are also focused on the core acreage in the Oklahoma plays. That has resulted in a 70% increase in initial production rates.
Currently there are 139 rigs operating in Oklahoma. Most of them are in the SCOOP and STACK formations. And I think we’re going to see rapid growth in Oklahoma’s other plays as well.
Producers with acreage in the SCOOP, STACK, SCORE and Merge plays will begin to shift drill rigs there from the backlogged Permian.
Both Newfield Exploration Co. (NYSE: NFX) and EOG Resources Inc. (NYSE: EOG) are a great way to play the growing oil boom in Oklahoma.
Good investing,
Dave