ENRJ reports

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http://finance.yahoo.com/news/enerjex-r ... 00938.html


EnerJex Resources Announces Record Revenue For The First Quarter Ended March 31, 2013, Including A 36% Increase In Oil Production And A 38% Increase In Adjusted EBITDA

SAN ANTONIO, May 15, 2013 /PRNewswire/ -- EnerJex Resources, Inc. (ENRJ) ("EnerJex" or the "Company"), a domestic onshore oil company, announced today that it has filed its SEC Form 10-Q for the quarter ended March 31, 2013. A copy of this document is available through the Company's website at www.enerjex.com.

Highlights for the first quarter include the following:

Production of 26,537 barrels of oil, a 36% increase compared to the prior year. Excluding production from properties that were assigned to outside general partners upon the dissolution of Rantoul Partners at the end of 2012, production increased approximately 44% compared to the prior year.
Record revenue of $2.3 million, a 23% increase compared to the prior year. Excluding revenue from properties that were assigned to outside general partners upon the dissolution of Rantoul Partners at the end of 2012, revenue increased approximately 30% compared to the prior year.
Operating expenses of $29.47 per net barrel of oil produced, a 6% decrease compared to the prior year.
Adjusted earnings before interest, income tax, depriciation and amortization ("EBITDA") of $822,759, a 38% increase compared to the prior year.
Completion of drilling 4 new oil wells and 7 new secondary recovery water injection wells in EnerJex's Mississippian Project located in Southeast Kansas with a 100% success rate.
Completion of drilling 5 new oil wells in the Company's Cherokee Project located in Eastern Kansas with a 100% success rate.
Production volumes during the three months ended March 31, 2013 were 26,537 barrels of oil compared to 19,485 barrels of oil during the three months ended March 31, 2012. Excluding production from properties that were assigned to outside general partners upon the dissolution of Rantoul Partners at the end of 2012, production was approximately 18,481 barrels of oil during the three months ended March 31, 2012.

Revenues were $2,337,301 for the first quarter of 2013 compared to $1,902,892 for the first quarter of 2012. Excluding revenue from properties that were assigned to outside general partners upon the dissolution of Rantoul Partners at the end of 2012, revenue was approximately $1,802,198 for the first quarter of 2012. The Company realized an average oil price of $88.07 during the first quarter of 2013 compared to $97.66 during the first quarter of 2012.

Lease operating expenses were $782,072 or $29.47 per net barrel of oil produced during the three months ended March 31, 2013 compared to $609,079 or $31.26 per net barrel of oil produced during the three months ended March 31, 2012.

Operating income was $369,055 for the first quarter of 2013 compared to operating income of $160,459 for the first quarter of 2012.

EBITDA was $582,818 during the three months ended March 31, 2013 compared to a loss of $591,419 during the three months ended March 31, 2012. Adjusted to exclude the effect of derivative contracts (oil hedges), EBITDA was $822,759 during the three months ended March 31, 2013 compared to $595,520 in the same period last year.

Net income was $20,036 for the first quarter of 2013 compared to a net loss of $1,081,682 during the first quarter of 2012. Adjusted to exclude the effect of derivative contracts (oil hedges), net income was $259,977 for the first quarter of 2013 compared to $105,257 in the same period last year.

Gains or losses from derivative contracts are primarily related to non-cash unrealized changes in the fair value of EnerJex's oil hedge portfolio as required by GAAP.

Management Comments

EnerJex's CEO, Robert Watson, Jr., commented, "I am pleased with our first quarter results and I look forward to another exciting drilling program in 2013. EnerJex is actively drilling in both of its Kansas projects where we continue to achieve successful results."

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ok, what's wrong with this report

enrj is experiencing a sell off and the report looks good