EnerJex
Posted: Fri Jul 12, 2013 9:50 am
EnerJex Resources (ENRJ) is one of the companies in our Small-Cap Growth Portfolio. It is a Micro-Cap. Based on their press release this morning, it appears the board has decided to test the market and they may sell the entire company. First Call's one year target price is $1.25/share and my Fair Value Estimate (break-up value) is $1.05/share. Current production should be around 320 bopd (100% light oil), ramping up to 500 bopd by year-end, primarily from their shallow waterfloods in eastern Kansas.
Dan
San Antonio, Texas (July 12, 2013) – EnerJex Resources, Inc. (OTCMarkets: ENRJ) (“EnerJex” or the “Company”), a domestic onshore oil company, announced today the following updates:
Recognition by The Independent Oil & Gas Service, Inc.
EnerJex was ranked as one of the most active operators in the state of Kansas during 2012 by The Independent Oil & Gas Service, Inc. The Company’s operating subsidiary, EnerJex Kansas, was ranked #21 with total footage of 130,758 for wells spudded during the year. Including the company’s majority owned non-operated assets, EnerJex believes it would have ranked approximately #10 in the state of Kansas with combined total footage of approximately 220,000 for wells spudded during the year.
Operations Update
The Company’s drilling pace accelerated in the second quarter during which it drilled 16 new oil wells and 16 new secondary recovery water injection wells in Kansas. EnerJex’s drilling activities continue to increase, and it is actively drilling new wells in its Mississippian and Cherokee projects. The Company believes it has further de-risked and added to its drilling inventory in both projects, where recent results appear to be exceptional.
Strategic Update
EnerJex’s Board of Directors believes the Company’s stock price is undervalued, and it is currently evaluating multiple opportunities to both unlock value and accelerate growth in an accretive manner on behalf of shareholders. EnerJex will provide additional information if and when one or more transactions has been consumated. There can be no assurance of the results or timing associated with this process and the Company’s development plan for 2013 may change as a result.
Management Comments
EnerJex’s CEO, Robert Watson, Jr., commented, “I believe that EnerJex has created a significant amount of value during the past few years which is not currently being recognized in the Company’s stock price, and the Board is working diligently in an effort to unlock value for shareholders.”
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.
Dan
San Antonio, Texas (July 12, 2013) – EnerJex Resources, Inc. (OTCMarkets: ENRJ) (“EnerJex” or the “Company”), a domestic onshore oil company, announced today the following updates:
Recognition by The Independent Oil & Gas Service, Inc.
EnerJex was ranked as one of the most active operators in the state of Kansas during 2012 by The Independent Oil & Gas Service, Inc. The Company’s operating subsidiary, EnerJex Kansas, was ranked #21 with total footage of 130,758 for wells spudded during the year. Including the company’s majority owned non-operated assets, EnerJex believes it would have ranked approximately #10 in the state of Kansas with combined total footage of approximately 220,000 for wells spudded during the year.
Operations Update
The Company’s drilling pace accelerated in the second quarter during which it drilled 16 new oil wells and 16 new secondary recovery water injection wells in Kansas. EnerJex’s drilling activities continue to increase, and it is actively drilling new wells in its Mississippian and Cherokee projects. The Company believes it has further de-risked and added to its drilling inventory in both projects, where recent results appear to be exceptional.
Strategic Update
EnerJex’s Board of Directors believes the Company’s stock price is undervalued, and it is currently evaluating multiple opportunities to both unlock value and accelerate growth in an accretive manner on behalf of shareholders. EnerJex will provide additional information if and when one or more transactions has been consumated. There can be no assurance of the results or timing associated with this process and the Company’s development plan for 2013 may change as a result.
Management Comments
EnerJex’s CEO, Robert Watson, Jr., commented, “I believe that EnerJex has created a significant amount of value during the past few years which is not currently being recognized in the Company’s stock price, and the Board is working diligently in an effort to unlock value for shareholders.”
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.