Jericho Oil Corporation (Jericho) has announced that its Oklahoma STACK Joint Venture will commence with the drilling of its second Osage formation well, the Trebuchet 21-23N-10W #1H, within its northern STACK acreage position, further delineating the nearly 16,000 net STACK acres. This will be Jericho’s third well drilled in the STACK Play in 2018 and second in the Osage formation.
This second Osage formation well follows the successful completion of the Swordspear 23-10-15 1H well located within the STACK JV’s Farm-in Acreage located on the Major and Alfalfa County border. The Swordspear well, after 45 days on an electrical submersible pump (ESP), continues to produce at an average rate over 400 oil-equivalent barrels (BOE) per day (55% oil). Osage formation wells commonly take 60-100 days from the start of first oil to reach peak initial production with the Swordspear benefiting from a shallow initial decline rate.
The STACK JV owns a 47.5% working interest in the Swordspear and a 48% working interest in the newly drilled Trebuchet. Current ultimate recovery projections place the potential rate of return at greater than 50%. The northern STACK position was accumulated at very attractive per acre rates and represents hundreds of future drilling locations at compelling economics.