EnerJex Resources Announces Oil Production Increase And Drilling Success At Rantoul Project
SAN ANTONIO, May 31, 2012 /PRNewswire/ -- EnerJex Resources, Inc. (ENRJ) ("EnerJex" or the "Company"), a domestic onshore oil company, announced today that it has completed 14 new oil wells and 30 new secondary recovery water injection wells in its Rantoul Project located in Eastern Kansas. Year-to-date, the Company has drilled 28 new oil wells and 49 new injection wells in this project with a 100% success rate. Twenty-two of the new oil wells have begun producing and 19 of the new secondary recovery wells have begun injecting water. The remaining wells are expected to be placed online in the near term.
Results from this drilling program have exceeded management's expectations, and production from this project has increased by 75% since the end of 2011 to approximately 175 barrels of oil per day. EnerJex currently has 2 rigs drilling new wells in its Rantoul Project, where the Company expects oil production to continue growing as new wells are completed and secondary recovery wells begin to pressurize the producing oil formation.
EnerJex's CEO, Robert Watson, Jr., stated, "EnerJex's drilling and production results continue to demonstrate the value of its extensive asset base, consisting of more than 500 low-risk oil drilling locations, the majority of which were not included in the Company's 2011 reserve report. Management expects the economic life of EnerJex's Kansas oil projects, which are characterized by low production decline rates, to exceed 50 years from today. I believe this provides an excellent foundation from which the Company can continue to increase per-share value for its stockholders."
About EnerJex Resources, Inc.
EnerJex is a domestic onshore oil company with assets located in Eastern Kansas and South Texas. The Company's primary business is to acquire, develop, explore and produce oil properties onshore in the United States. Additional information is available on the Company's web site at www.enerjex.com.
This press release and the materials referenced herein include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give EnerJex's current expectations or forecasts of future events. The statements in this press release regarding the acquisition of operating assets and related agreements; any implied or perceived benefits from any current or future transaction, and any other effects resulting from any of the above, are forward-looking statements. Such statements involve risks and uncertainties, including but not limited to: whether acquired properties will produce at levels consistent with management's expectations; market conditions; the ability of EnerJex to obtain financing for continued drilling; the costs of operations; delays, and any other difficulties related to producing oil; the ability of EnerJex to integrate the newly purchased assets and any newly acquired employees; the price of oil; EnerJex's ability to market and sell produced minerals; the risks and effects of legal and administrative proceedings and governmental regulation; future financial and operational results; competition; general economic conditions; the results to be achieved with various drilling techniques; and the ability to manage and continue growth. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. Important factors that could cause actual results to differ materially from the forward-looking statements are set forth in our Form 10-K filed with the United States Securities and Exchange Commission and our Form 10-Q. EnerJex undertakes no obligation to revise or update such statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. EnerJex's production forecasts are dependent upon many assumptions, including estimates of production decline rates from existing wells and the outcome of future drilling activity. Although EnerJex believes the expectations and forecasts reflected in these and other forward-looking statements are reasonable, it can give no assurance they will prove to have been correct. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties.
Brad Holmes, Investor Relations
Robert Watson, Jr. CEO