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Jericho Oil Reports December 31, 2016 Reserves


FOR: JERICHO OIL CORPORATION
TSX VENTURE Symbol: JCO
OTC PINK Symbol: JROOF

Date issue: May 04, 2017
Time in: 8:00 AM e

Attention:

Company Increases 2P Reserves by 147%

VANCOUVER, BC and TULSA, OK --(Marketwired - May 04, 2017) - Jericho Oil Corporation ("Jericho") (TSX VENTURE: JCO) (OTC PINK: JROOF), announces the results of its 2016 year-end reserves evaluation of its Kansas and Oklahoma properties as prepared by Cawley, Gillespie & Associates, Inc. ("CGA"), the Company's independent reserves evaluator. The evaluation was prepared in accordance with the standards contained in the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook") and National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101").

Highlights of the Reserve Report (all dollar amounts in $USD):

Jericho for the year ending December 31, 2016 achieved significant reserve value growth (all dollar amounts are the Present Value of future cash flows discounted at 10% before tax derived from YE2016 Independent Reserve Report using forecast pricing, $USD):

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-- Proved plus Probable (2P) reserves total $41.9mm or 4.2mm barrels of oil

equivalent, 147% increase y-o-y -- Proved (1P) reserves total $27.9mm or 2.3mm barrels of oil equivalent, 77% increase y-o-y -- Proved Developed (PDP + PDNP) reserves totaled 1.6mm barrels of oil equivalent, 72% increase y-o-y -- Jericho replaced(1) its 2016 production by 144% with the increase in PDP reserves and 1,289% with the increase in 1P reserves mostly through a successful acquisition and the deployment of incremental capital to field-level initiatives -- The Company's 2016 average finding, development and acquisition ("FD&A") costs are $4.34/boe(2) for Proved Developed reserves -- In comparing the cost of getting that Proved Developed boe out of the ground with the cash earned per boe, the Company generated a 1.78x recycle ratio(3), based on a full-year 2016 operating netback of $7.74/boe despite a challenging oil price environment -- Proved Developed reserves accounted for 78% of the Total Proved reserves value -- Approximately 75% of Proved reserves were crude oil (boe basis) -- The net asset value on a 2P NPV10% valuation is approximately $40.7mm or USD$0.52 per common share outstanding, excluding any value for undeveloped land and assuming net debt(4) of $(1.27mm) and 78,840,404 common shares outstanding.

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(1) Replacement ratio, a non-IFRS financial measure, is an indicator of a
company's ability to replace its production and grow reserves, calculated as
the sum of the reserve additions from defined sources divided by production
for the corresponding period.
(2) Recycle ratio, a non-IFRS financial measure, represents the cash earned
per boe produced (the numerator) versus the cost of getting that boe out of
the ground (the denominator). It serves as a proxy for a company's return on
capital over a defined period of time.
(3) The Company deployed approximately $3.03mm on exploration costs plus
Proved Property Acquisition Costs plus Development Costs which yielded an
increase in year-over-year Proved Develop reserves of approximately 699k
barrels of oil equivalent.
(4) Net debt as defined by the Company's credit agreement as of 12.31.16;
Total debt of approximately $2.48mm less cash on hand of approximately $3.75mm

Note: Barrels of oil equivalent ("boe") amounts have been calculated using a conversion ratio of six thousand cubic feet (6 mcf) of natural gas to one barrel (1 bbl) of crude oil. The boe conversion ratio of 6 mcf to 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Allen Wilson, CEO of Jericho Oil, stated, "We continued to execute on Jericho's growth strategy throughout the prolonged oil price downturn resulting in increased production and reserves, the main drivers of our Company's intrinsic value. We increased Total Proved reserves NPV-10 by over 75%. Our current asset base is producing strong field-level cash margins at current oil prices and have significant development optionality."

Below, please find the charts outlining the Present Value and Per Barrel Reserves summary of Jericho's asset base in addition to its net asset value and operating netback calculations:

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Net Present Value ($M, USD) Discounted at: Reserve Category Net BOE 0% 5% 10% 15% 20% ------------------------------- -------------------------------------------- Proved Producing 853,767 28,055 18,292 13,423 10,554 8,679 Proved Non-Producing 812,600 24,630 13,593 8,389 5,490 3,685 Proved Undeveloped 662,533 17,629 10,293 6,169 3,614 1,924 ------------------------------- -------------------------------------------- Total Proved 2,328,900 70,314 42,178 27,981 19,658 14,288 =============================== ============================================ Total Probable 1,878,267 43,266 24,684 13,965 7,432 3,301 ------------------------------- -------------------------------------------- Proved plus Probable 4,207,167 113,580 66,862 41,946 27,090 17,589 =============================== ============================================

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Net Asset Value NPV10 ($mm) $ / Share ---------------------------------------------------- Total Proved 27,981 $ 0.36 ==================================================== Total Probable 13,965 $ 0.18 ---------------------------------------------------- Proved plus Probable 41,946 $ 0.53 ==================================================== Net Debt (1,269) $ (0.02) ---------------------------------------------------- Net Asset value 40,677 $ 0.52 ====================================================

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Operating Netback ($/boe) --------------------------------------- Avg. Realized Sales Price (net of royalties) $ 30.62 Operating Expenses $ 20.85 O&G Production Taxes $ 2.03 --------------------------------------- Operating Netback $ 7.74 ---------------------------------------

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About Jericho Oil Corporation

Jericho is a growth-oriented oil and gas company engaged in the acquisition, exploration, development and production of overlooked and undervalued oil properties in the Mid-Continent. For more information, please visit www.jerichooil.com.

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.

- END RELEASE - 04/05/2017

For further information:

CONTACTS:

Tony Blancato,
Director, Investor Relations
P: 918.986.7616

or

Adam Rabiner,
Director, Corporate Communications
P: 1.800.750.3520
investorrelations@jerichooil.com

COMPANY:
FOR: JERICHO OIL CORPORATION
TSX VENTURE Symbol: JCO
OTC PINK Symbol: JROOF

INDUSTRY: Energy and Utilities - Oil and Gas
RELEASE ID: 20170504CC011

Press Release from Marketwired 1-866-736-3779

All press releases are written by the client and have NO affiliation with the news copy written by The Canadian Press. Any questions that arise due to the content or information provided in the press release should be directed to the company/organization issuing the release, not to The Canadian Press.



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