Jericho Oil said it has closed its non-brokered private placement of more than 17million units for $6.929million.
The company said the proceeds of the offering were used to acquire producing wells and prospective acreage in Central Oklahoma.
The acquisitions, which closed at the end of last month, are in an area complementary to Jericho’s existing operations in the region.
The move represents the company’s fourth acquisition within central and north east Oklahoma last year.
Jericho acquired a 50% working interest in a 10,000 acre asset package with current production of approximately 119 barrels of oil equivalent per day.
The company also closed on a 25% working interest in a 30,000 acre asset package with average third quarter production of 427 barrels of oil equivalent per day.
Jericho said it intends to acquire an additional 25% working interest in the package in the first quarter of the year.
Allen Wilson, chief executive, said: “We are grateful for the tremendous support of our stakeholders, who share our belief that the current low-price oil environment offers Jericho an extraordinary opportunity to acquire quality producing assets, below what we believe are their long-term intrinsic values, while amassing a land bank with enormous development and drilling upside when prices recover.”