Source: Maurice Jackson for Streetwise Reports 08/29/2018
Brian Williamson, CEO of Jericho Oil, speaks with Maurice Jackson of Proven and Probable about his company’s drill program in the STACK.
Maurice Jackson: Joining us today is Brian Williamson, the CEO of Jericho Oil Corp. (JCO:TSX.V; JROOF:OTC).
In our last interview, we discussed how Jericho Oil has been strategically making the transition from acquisition to development through the Anadarko Basin with a focus on the STACK play. So far in 2018, Jericho Oil has remained committed to the task development with the spudding successes of the Wardroom and Swordspear wells. Please get us up to speed on these two wells.
Brian Williamson: The Wardroom well and the Swordspear well are our first two STACK wells, and our goal has been and will continue to be to grow Jericho through the drill bit. The Wardroom was focused on the Meramec formation, which is the shale component of the STACK play in the Anadarko Basin.
The Wardroom well has done extremely well and in terms of its production to date in seven months, it’s produced over 80,000 BOEs so far. It’s paid back over half of our investment in the well, currently doing about 250 barrels a day (BOEPD). So from our perspective we feel real good about what we’re seeing out of the Wardroom.
It’s continuing to decline, obviously, from where it started, but eight months later when we were seeing a well that started out at 950 doing 250, we’re really feeling good about it. So it’s right where we thought it would be, producing what we thought it would produce and it came in under budget. So everything about the Wardroom was great. Nothing we would change about that.
The Swordspear well has been focused on testing the Lower Osage, which is another STACK formation. So remember the STACK has many formations and obviously we will not get to test them all before the year ends. But we will continue to delineate and test different components of the formations that we believe are going to be the most oil bearing zones. So the Lower Osage is one that, if you think back to our first interview, Maurice, that was one that we talked about which was a real focus of us. We think that rock can be real oily and an excellent source of hydrocarbons. And it’s prevalent throughout all of our acres.
So the Swordspear well, being a Lower Osage well, does not produce the same as the Meramec shale well. The Lower Osage well takes a little bit more movement. You’ve got to pump it to get it to come on. So we put a gas lift on it for the first 30 days, realized that that was not the right design, switched over to a submersible pump, and got the well going. We’re pleased to say it’s continuing to produce at or above 400 BOEPD, and we are now day 75-ish into the Swordspear’s production.
So everything Jericho Oil thought we would see, we are seeing, and we like what we’re seeing from the submersible. Swordspear is a shale well, so some of the things that will change now that we’ve announced the Trebuchet, which is going to be drilled this month, we’re going to change the initial component where we won’t go to gas lift to start. We’ll immediately go to submersible. We’re going to go to a bigger submersible to move more fluid initially. So we think that will actually accelerate the performance of the Trebuchet. I think that’s going to make a difference in terms of getting oil quicker out of the well, which is important when you have higher oil prices. You want your oil right now.
But as a shale well, the Swordspear has been great. We like everything we see. Rock looks really good, our image log showed a lot of good interbedded chart. So we are going to continue to target the Lower Osage, hence the Trebuchet, as well as the Meramec. You’re going to see that these are the dominant things you’re going to find from Jericho as we push forward in the STACK.
Maurice: Speaking of the Trebuchet, Jericho Oil just issued a press release on spudding on the third well there. Provide us with some more details on the Trebuchet.
Brian: When you test a formation you want to show the breadth and depth. So the idea was always not to just quit after one well. We intend to drill many more Lower Osage Wells. The Trebuchet is an offset to the Swordspear, and the idea there is to pick a fairly approximate location so that you have confirmation that the oil in place is there where you believed it was when you went and did your geology work.
I think on the Trebuchet what you’ll see is we’re hoping to increase the speed at which we drill. We understand the rock better and how it drills, so we should be able to drill it faster. I think the frack that we used last time made sense. Obviously we’d love to have more data but the reality is that the frack will look similar to the one that was done last time.
But the Trebuchet is key to the Armor joint venture we have there, because it establishes the two-year term on all 6,600 acres in that farm out there. For us that’s a big deal because now we have two years to drill up at our leisure those 6,600 acres. Pretty excited to spud the Trebuchet, and get that well going. And as I said earlier, I think you’ll see faster results. You’ll also see and hear from us a little bit more in between spudding and productions. So we will continue to update our investors in the market on the status …read more
From:: The Energy Report