SAN ANTONIO--(BUSINESS WIRE)--EnerJex Resources, Inc. (OTCBB: ENRJ) (“EnerJex”, or the “Company”), a pure-play domestic onshore oil company, announced today that it has successfully drilled and completed four new oil wells at its Tri-County Project located in Franklin County, KS. Each well encountered the target oil reservoir and three of the four encountered an additional deeper oil reservoir that is expected to be productive. The company plans to drill more than 100 new oil wells in this area and expects to complete six additional oil wells by the end of February.
The Tri-County Project represents one of EnerJex’s most prolific assets and these new wells are expected to significantly increase the Company’s oil production in the near term.
EnerJex also announced today that it has secured $650,000 of project financing from two joint venture partners on a turnkey basis to drill and complete 14 new wells on an undeveloped lease in Douglas County that contains 1 discovery oil well and has the potential for up to 60 additional oil wells. EnerJex will serve as the operator and retain a 30% interest in the project.
Management Comments
EnerJex’s CEO, Robert Watson, Jr., commented, “Today’s announcements mark only the tip of the iceberg as it relates to our drilling plans for 2011. EnerJex has a tremendous inventory of low-risk oil development drilling locations and we are currently in the process of high-grading these projects, some of which the Company will seek outside capital to develop. In addition, we have nearly finished completing deferred field maintenance work on our Eastern Kansas properties, which is expected to meaningfully increase the Company’s oil production in the months ahead. We intend to accelerate our drilling activities as the year progresses and look forward to updating investors on our results.”
About EnerJex Resources, Inc.
EnerJex is a pure-play 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. Additional information is available on the Company’s website at www.enerjexresources.com.
Forward-Looking Statements
This press release includes "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 those transactions, 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: the ability to obtain financing for continued drilling; continued production of oil at historical rates; costs of operations; delays, and any other difficulties related to producing oil; the ability of EnerJex to integrate the newly purchased assets and newly acquired employees; price of oil; marketing and sales of produced minerals; risks and effects of legal and administrative proceedings and governmental regulation; future financial and operational results; competition; general economic conditions; 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 EnerJex makes in this news release include market conditions and those set forth in reports or documents EnerJex files from time to time with the SEC. 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.