The proposed acquisition will allow the company to commence work on its second platform which will focus on developing legacy productive basins.
With this acquisition, Jericho’s total acreage portfolio will be more than 5,800 acres.
The area to be acquired produces oil and gas, equivalent to around seven barrels of oil per day.
Jericho Oil CEO Allen Wilson said: "The market’s recent turbulence has provided us an opportunity to focus our efforts on acquiring assets with good, long-term development potential at favorable pricing.
"We are excited about starting our second platform and look forward to diligencing more opportunities in Oklahoma.
"With a strong cash position and no company debt, it is our intention to continue down this path to patiently evaluate leases as they present themselves."
The Cherokee basin runs from southeast Kansas through northeast Oklahoma, and hosts shallow geological formations as Jericho currently operates within Kansas.
Jericho is seeking to strengthen its position in Oklahoma, which is said rank fifth in crude oil production and fourth in natural gas production.
