American Oil and Gas Reporter - April 2016 - 71

SpecialReport: Drilling Technology
This fact and others reflect Gunn Oil's
financial health, he says, which puts the
company in an excellent position to weather difficult times.
Building A Position
Although Jericho Oil Corporation is
not drilling in early 2016, it has been
"assimilating acquisitions that have targets
we will drill," explains company founder
and President Allen Wilson.
Wilson founded Jericho in 2010, and
the company went public in 2012. Wilson
started the company in Vancouver, British
Columbia, but adds that Jericho's Tulsa
office has grown to the point that it
exceeds the company's headquarters. As
Jericho ramps up in anticipation of more
drilling activity in Kansas and Oklahoma,
Wilson points out that tough times also
can make for a buyer's market.
"In times like these, it is cheaper to
buy production than drill for it," he
reasons. "We have aggressively amassed
a 45,000-acre land bank that has some of
the best quality rock to drill. We have
made four acquisitions in the last year."
According to Wilson, Jericho made
its first foray into Kansas in April 2014,
acquiring properties that are dependable,
if not spectacular. "We consider that our
'steady Eddie,'" he characterizes. "Then
we set our sights on a second platform."
Jericho found that in Oklahoma with
multizone stacked formations east of the
Nemaha Ridge structural uplift, which
he says gives way to higher oil and liquids
content on the Mississippian Lime's eastern flank. The company's targets lie in
the conventional Pennsylvania Sands,
Mississippian Lime, Devonian Woodford
Shale, and Silurian Hunton formations
in Oklahoma's Seminole, Pottawatomie,
Lincoln, Creek, Osage and Payne counties.
Along with more than 50 vertical
wells, Wilson says Jericho's three most
recent acquisitions include 18 producing
horizontal wells, but he says the company
has no plans to drill horizontally.
"We understand conventional," he
maintains. "These various reservoirs have
been drilled conventionally in this area
since the early 1900s."
Wilson says Jericho is targeting the
historically productive regions that have
seen an abundance of debt capital deployed
to find and develop new plays. All of
Jericho's targets have high-quality deeper
rocks with stacked shallow formations
uphole that can be developed at much

Gunn Oil plans to drill four wildcat prospects in the Texas Panhandle to depths of about
4,000 feet and then stimulate with acid. If any of the wildcats prove successful, the company says it is likely to continue drilling conventional vertical wells through the rest of
2016.

lower prices, he concludes.
Shallow Oil And Gas Sands
Dwight D. Keen, owner of Keen Oil
Company LLC in Winfield, Ks., has been
drilling vertical wells for more than 40
years in oil and gas sands that are 1,900
feet and shallower in south-central Kansas.
He lists the Mississippian Lime, and Peru

and Weiser sands as the productive zones
his company targets.
"We have not drilled since 2013," he
states. "However, except for the most
marginal wells, we have not shut in production. Given the commodity pricing
environment, we have curtailed the aggressiveness of our secondary recovery
efforts and focused on improving efficiency

Although Jericho Oil Corporation started in Vancouver, British Columbia, with its 45,000
acres of acquisitions in Oklahoma and Kansas, the company says its Tulsa office has
outgrown its Canadian headquarters. The company is setting the stage for a significant
drilling program.

APRIL 2016 71

American Oil and Gas Reporter - April 2016

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