This puppy is high on my radar screen. I hope to get them to host a luncheon for us this spring. - Dan
San Antonio, Texas / Denver, Colorado / Kansas City, Missouri (March 6, 2014) – EnerJex Resources, Inc. (OTCMarkets: ENRJ) (“EnerJex” or the “Company”) announced today that it has commenced natural gas production from the previously announced J-Sand well. This well is flowing at a rate of approximately 500 thousand cubic feet (MCF) of liquids-rich natural gas per day on a 14/64” choke up 5.5” casing with a flowing pressure of 400 pounds per square inch. This equates to approximately 100 barrels of oil equivalent (BOE) per day based on an energy equivalent ratio of 6 MCF per barrel of oil and an expected yield of at least 1.4 gallons of natural gas liquids per MCF. Commencement of this production was achieved at a total cost of less than $100,000.
EnerJex’s operations at Adena Field were primarily focused on maintaining existing production during the past month due to extremely cold weather and harsh operating conditions. Despite this challenge, the Company successfully completed testing one additional J-Sand oil well and plans to commence production from two new oil wells, including one that was previously announced, within the next two weeks. Operating conditions have returned to normal, and EnerJex plans to continue aggressively reactivating and recompleting oil wells in Adena Field throughout 2014.
According to the Colorado Oil and Gas Conservation Commission, Adena is the third largest oil field in the history of Colorado behind Rangely and Wattenberg, having produced 75 million barrels of oil and 125 billion cubic feet of natural gas. Nearly all of the producing wells in Adena Field were temporarily abandoned or shut-in during the secondary recovery phase in the mid-1980s when oil prices collapsed, and only a small number of wells have been produced since that time. Approximately 130 wells are currently shut-in or temporarily abandoned, of which the Company has initially identified approximately 75 wells to be reactivated in the J-Sand formation or recompleted in the D-Sand formation.
Management Comments
EnerJex’s CEO, Robert Watson, Jr., commented, “I am pleased to announce these developments including a further increase in the Company’s natural gas production and additional validation of our oil prospects at Adena Field. EnerJex is also in the process of working over multiple natural gas wells in its Niobrara Project located in Northeastern Colorado. These wells have contributed minimal production during the past year, and I look forward to updating shareholders on the results of this program during the coming weeks.”
EnerJex
Re: EnerJex
Dan, what are your thoughts on the reserves report they released this morning?
Re: EnerJex
This is good stuff. I will call Robert later this week to see if I can get EnerJex to host luncheons for us in Dallas and Houston. - Dan
ENERJEX RESOURCES ANNOUNCES 488% INCREASE IN YEAR END 3P RESERVES AND PROVED PV-10 OF $102 MILLION
San Antonio, Texas / Denver, Colorado / Kansas City, Missouri (March 17, 2014) – EnerJex Resources, Inc. (OTCMarkets: ENRJ) (“EnerJex” or the “Company”) announced today its estimated reserves for the year ending December 31, 2013. These results include the addition of assets that were acquired through EnerJex’s merger with Black Raven Energy, Inc. at the end of September 2013.
Reserve Report Highlights:
Record proved reserves of 5.8 million barrels of oil equivalent (BOE), a 98% increase compared to the prior year.
Record proved, probable, and possible (3P) reserves of 17.2 million BOE, a 488% increase compared to the prior year.
Record proved PV-10 value (present value of pre-tax future net cash flow discounted at 10% per annum) of $102.4 million, a 68% increase compared to the prior year.
Record 3P PV-10 value of $184.2 million, a 203% increase compared to the prior year.
EnerJex’s 2013 3P reserve estimates are based on an average net price of $88.28 per barrel of oil and $3.45 per thousand cubic feet of natural gas. Based on NYMEX strip pricing as of March 10, 2014, the PV-10 value of the 3P reserves attributed to the Company’s Niobrara assets, which account for the majority of its 3P natural gas reserves, would increase by $22.6 million or 52% from $43.5 million to $66.1 million.
Reserve Report Summary:
Net Oil Net Gas Net NGL Net
Reserve Category (MBBL) (MMCF) (MBBL) MBOE PV-10
Proved Developed Producing 2,677 686 26 2,818 $62,733
Proved Developed Nonproducing 464 3,171 14 1,007 $11,501
Proved Undeveloped 1,303 4,060 - 1,980 $28,178
Total Proved 4,444 7,917 41 5,805 $102,412
Probable 519 16,171 11 3,225 $21,381
Possible 1,517 39,898 7 8,173 $60,404
Total 3P 6,480 63,986 58 17,202 $184,197
Management Comments
EnerJex’s CEO, Robert Watson, Jr., commented, “I am pleased to announce these results, which demonstrate the vast amount of oil and natural gas resources that EnerJex plans to aggressively develop and expand. The Company has achieved a new milestone by surpasing $100 million of proved PV-10 value, and EnerJex’s Board of Directors continues to focus on strategically unlocking value and accelerating growth in an accretive manner for shareholders.”
About EnerJex Resources, Inc.
EnerJex Resources, Inc. is an independent exploration and production company focused on the acquisition and development of oil and natural gas properties located in the mid-continent region of the United States. The Company owns oil and gas leases covering approximately 100,000 acres in multiple prolific hydrocarbon basins located in four states including Colorado, Kansas, Nebraska, and Texas.
EnerJex’s operations are focused in five distinct projects where the company produces oil and natural gas from shallow reservoirs that are characterized by long lived reserves with low production decline rates. Within these projects, the Company has identified more than 500 low-risk drilling locations. Through its large acreage footprint in the Denver-Julesburg (“DJ”) Basin, EnerJex also has significant exposure to emerging oil resource plays that are being pursued by numerous competitors on trend with the Company’s properties. EnerJex’s headquarters are located in San Antonio, Texas, and additional information is available on its website at www.enerjex.com
Information on Reserves and PV-10 Value
EnerJex’s reserve reports for the years ended December 31, 2013 and 2012 were prepared by MHA Petroleum Consultants, Inc. Future cash inflows relating to the Company’s reserves were computed for the years ended December 31, 2013 and 2012 using the twelve month average price for oil and natural gas (the “benchmark prices”) adjusted for sales contracts and price differentials. Benchmark prices are held constant in accordance with SEC guidelines for the life of the wells. PV-10 value is a non-GAAP measure and is different than the Standardized Measure of Discounted Future Net Cash Flows (“Standardized Measure”), which measure will be presented in EnerJex’s upcoming Form 10-K, in that PV-10 value is a pre-tax number, while the Standardized Measure includes the effect of estimated future income taxes.
The Company’s 100% working interest in its Adena Field Project is subject to a 30% reversionary working interest that will be assigned to an unrelated third party, subject to the terms and conditions of such agreement, after payout of all acquisition, operating, development, and financing costs including interest. The payout balance associated with this reversionary interest was estimated to be approximately $28 million as of December 31, 2013. The impact of this reversionary interest was not included in EnerJex’s year end 2013 proved reserve estimates because the timing associated with the reversion is expected to occur more than ten years from the date of this report and the PV-10 value associated with such interest is minimal. The reversionary interest was not evaluated in the Company’s probable and possible reserve estimates. EnerJex’s Adena Field Project accounted for approximately 29% of the PV-10 value associated with its proved reserves and 35% of the PV-10 value associated with its 3P reserves in its year end 2013 reserve report.
EnerJex's estimate of proved, probable and possible reserves is provided in this release because management believes it is useful information that is widely used by the investment community in the valuation, comparison and analysis of companies. However, the SEC prohibits companies from aggregating proved, probable and possible reserves in filings with the SEC due to the different levels of certainty associated with each reserve category.
ENERJEX RESOURCES ANNOUNCES 488% INCREASE IN YEAR END 3P RESERVES AND PROVED PV-10 OF $102 MILLION
San Antonio, Texas / Denver, Colorado / Kansas City, Missouri (March 17, 2014) – EnerJex Resources, Inc. (OTCMarkets: ENRJ) (“EnerJex” or the “Company”) announced today its estimated reserves for the year ending December 31, 2013. These results include the addition of assets that were acquired through EnerJex’s merger with Black Raven Energy, Inc. at the end of September 2013.
Reserve Report Highlights:
Record proved reserves of 5.8 million barrels of oil equivalent (BOE), a 98% increase compared to the prior year.
Record proved, probable, and possible (3P) reserves of 17.2 million BOE, a 488% increase compared to the prior year.
Record proved PV-10 value (present value of pre-tax future net cash flow discounted at 10% per annum) of $102.4 million, a 68% increase compared to the prior year.
Record 3P PV-10 value of $184.2 million, a 203% increase compared to the prior year.
EnerJex’s 2013 3P reserve estimates are based on an average net price of $88.28 per barrel of oil and $3.45 per thousand cubic feet of natural gas. Based on NYMEX strip pricing as of March 10, 2014, the PV-10 value of the 3P reserves attributed to the Company’s Niobrara assets, which account for the majority of its 3P natural gas reserves, would increase by $22.6 million or 52% from $43.5 million to $66.1 million.
Reserve Report Summary:
Net Oil Net Gas Net NGL Net
Reserve Category (MBBL) (MMCF) (MBBL) MBOE PV-10
Proved Developed Producing 2,677 686 26 2,818 $62,733
Proved Developed Nonproducing 464 3,171 14 1,007 $11,501
Proved Undeveloped 1,303 4,060 - 1,980 $28,178
Total Proved 4,444 7,917 41 5,805 $102,412
Probable 519 16,171 11 3,225 $21,381
Possible 1,517 39,898 7 8,173 $60,404
Total 3P 6,480 63,986 58 17,202 $184,197
Management Comments
EnerJex’s CEO, Robert Watson, Jr., commented, “I am pleased to announce these results, which demonstrate the vast amount of oil and natural gas resources that EnerJex plans to aggressively develop and expand. The Company has achieved a new milestone by surpasing $100 million of proved PV-10 value, and EnerJex’s Board of Directors continues to focus on strategically unlocking value and accelerating growth in an accretive manner for shareholders.”
About EnerJex Resources, Inc.
EnerJex Resources, Inc. is an independent exploration and production company focused on the acquisition and development of oil and natural gas properties located in the mid-continent region of the United States. The Company owns oil and gas leases covering approximately 100,000 acres in multiple prolific hydrocarbon basins located in four states including Colorado, Kansas, Nebraska, and Texas.
EnerJex’s operations are focused in five distinct projects where the company produces oil and natural gas from shallow reservoirs that are characterized by long lived reserves with low production decline rates. Within these projects, the Company has identified more than 500 low-risk drilling locations. Through its large acreage footprint in the Denver-Julesburg (“DJ”) Basin, EnerJex also has significant exposure to emerging oil resource plays that are being pursued by numerous competitors on trend with the Company’s properties. EnerJex’s headquarters are located in San Antonio, Texas, and additional information is available on its website at www.enerjex.com
Information on Reserves and PV-10 Value
EnerJex’s reserve reports for the years ended December 31, 2013 and 2012 were prepared by MHA Petroleum Consultants, Inc. Future cash inflows relating to the Company’s reserves were computed for the years ended December 31, 2013 and 2012 using the twelve month average price for oil and natural gas (the “benchmark prices”) adjusted for sales contracts and price differentials. Benchmark prices are held constant in accordance with SEC guidelines for the life of the wells. PV-10 value is a non-GAAP measure and is different than the Standardized Measure of Discounted Future Net Cash Flows (“Standardized Measure”), which measure will be presented in EnerJex’s upcoming Form 10-K, in that PV-10 value is a pre-tax number, while the Standardized Measure includes the effect of estimated future income taxes.
The Company’s 100% working interest in its Adena Field Project is subject to a 30% reversionary working interest that will be assigned to an unrelated third party, subject to the terms and conditions of such agreement, after payout of all acquisition, operating, development, and financing costs including interest. The payout balance associated with this reversionary interest was estimated to be approximately $28 million as of December 31, 2013. The impact of this reversionary interest was not included in EnerJex’s year end 2013 proved reserve estimates because the timing associated with the reversion is expected to occur more than ten years from the date of this report and the PV-10 value associated with such interest is minimal. The reversionary interest was not evaluated in the Company’s probable and possible reserve estimates. EnerJex’s Adena Field Project accounted for approximately 29% of the PV-10 value associated with its proved reserves and 35% of the PV-10 value associated with its 3P reserves in its year end 2013 reserve report.
EnerJex's estimate of proved, probable and possible reserves is provided in this release because management believes it is useful information that is widely used by the investment community in the valuation, comparison and analysis of companies. However, the SEC prohibits companies from aggregating proved, probable and possible reserves in filings with the SEC due to the different levels of certainty associated with each reserve category.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: EnerJex
Dan, what do you think of ENRJ's ops update this morning?
Re: EnerJex
10 bopd wells aren't much to get excited about, but if they can get 75 more on-line it would be very good.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: EnerJex
is enrj connected to prop yet? shudn't they be?
Re: EnerJex
the ops update did not get very wide distribution--they need to take a hard look at their outlet.