What you need to know: • JEV announced that it has commenced a strategic process to explore the spin-off of its hydrogen portfolio. We view this as a strong positive for shareholders. • Over the past month, JEV also closed a $2.2M private placement and amended the terms on its debentures, setting up the Company for this transaction. Yesterday after market close, Jericho Energy Ventures Inc. (JEV:TSXV, JROOF:OTC) announced that it has commenced a strategic process to explore the spin-off and separate listing of its hydrogen platform. We view a potential spin-off as a great outcome for shareholders as the value of both JEV’s O&G and hydrogen assets will be better appreciated in their own separate entities. We are maintaining our BUY rating and C$0.50/share target price on JEV. Proposed Spin-Off The proposed spin-off aims to create two independent, streamlined, pure-play companies focused on becoming leaders in their respective markets, O&G production in Oklahoma and hydrogen energy technologies. Each business will have an appropriate capital structure and management team to support creating maximum shareholder value. If successful, the oil and gas business will remain with Jericho Energy Ventures while the hydrogen assets will be moved to a new entity. As for the O&G entity, the proposed transaction will provide much greater visibility as the economics of its assets were previously hidden by JV accounting. We think this will allow investors to better appreciate the assets which were last reported to have a PV-10 (proven reserves only) of US$44M or C$0.29/share. As for the hydrogen portfolio, the proposed transaction will allow the new entity to attract energy transition and ESG investors, which previously shied away due to the hydrocarbon aspect. As a reminder, JEV’s hydrogen portfolio had great momentum in late 2023 with announcements including U.S. DoE Funding, a manufacturing agreement with Superior Boiler, strong testing results from H2U, a collaboration with Exogen & Lhyfe SA, as well as its first boiler order. Please refer to our previous research reports on Jericho here.