Thursday, May 05, 2011
EnerJex Resources, Inc.
EnerJex Resources, Inc. on Thursday provided the following update on its operations year to date.
Operations Update
Eastern Kansas:
EnerJex has drilled 32 development wells with a 100% success rate and 3 wildcat exploration wells with a 33% success rate. A handful of these wells are already online and the remainder should be operational within 30 days. In addition, the Company has re-established production from more than 50 idle wells that required maintenance work.
A number of the development wells were drilled deeper than those of EnerJex's adjacent producers, and encountered additional oil pay zones which will be tested. EnerJex's successful exploration well encountered two oil pay zones, one of which presently appears to have exceptional potential. The higher-potential zone will be tested in the coming weeks and the Company may drill additional wells to evaluate the size and scope of this potential discovery. Current production in Eastern Kansas is approximately 215 barrels of oil per day net to the Company's working interest.
South Texas:
EnerJex recently worked over a well in its El Toro Project and the Company plans to work over two additional oil-producing wells. The recent workover increased production by approximately 18 barrels of oil per day. The Company's current production in South Texas is approximately 40 barrels of oil per day from five wells in which EnerJex owns a 40% working interest.
Management Comments
EnerJex's CEO, Robert Watson, Jr., commented, "We have been hard at work in Eastern Kansas during the past four months and expect these efforts to result in measurable near-term production growth. The Company currently has two rigs drilling new wells in Eastern Kansas and expects to contract an additional rig by June to drill multiple new development wells at our El Toro Project in South Texas."
EnerJex is a domestic onshore oil company with assets located in Eastern Kansas and South Texas. The Company's primary business is to explore, develop, produce and acquire oil properties onshore in the United States.
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