Jericho Oil Corp. (TSX-V: JCO) has closed a deal for a working interest in an oil property in Oklahoma.
The Vancouver-based company focuses on acquisition, exploration, development and production of oil properties, especially in the U.S. This is the company's first deal for property in Oklahoma.
The energy business is expected to face a wave of distressed because of low crude oil prices, which presents an opportunity for investors looking to acquire assets without paying the huge multiples we saw in previous years.
"The market's turbulent conditions have provided us with the opportunity to acquire assets with positive, long-term potential at discounted prices," says Allen Wilson, Jericho CEO.
Jericho plans to acquire shallow, vertical, long-lived, oil wells in mature oil and gas fields.
The company is just one of many expected to take advantage of discounted prices in the oil industry. For more, see Investors Flow Into Oil & Gas.
There have been several energy-related deals lately including Plains All American Pipelines LP's (NYSE: PAA) deal for Legion Terminals LLC in February, and Arc Logistics Partners LP's (NYES: ARCX) partnership with GE Energy Financial Services to buy Joilet Bulk Barge & Rail LLC.