EnerJex Resources (ENRJ)

[dan_s]

I like Robert Watson, Jr. and I follow this micro-cap closely. I like this deal because it shores up their balance sheet. - dan

San Antonio, Texas / Denver, Colorado / Kansas City, Missouri (April 10, 2014) – EnerJex Resources, Inc. (OTCMarkets: ENRJ) (“EnerJex” or the “Company”) announced today that it has completed the sale of its interests in approximately 2,250 non-producing gross acres comprising the Company’s Lonesome Dove Project in Lee County, Texas. These interests consisted of a 50% working interest from the surface through a depth of approximately 4,800 feet, a 10% working interest in all other depths, and a 15% carried working interest in the first of any well to be drilled by its partner to a depth greater than approximately 4,800 feet.

Pursuant to the terms of this transaction, EnerJex received $450,000 in cash and will receive an average overriding royalty interest of approximately 2.4% in the acreage, more than 95% of which expires in 2017 and 2018 unless it is first drilled and held by production. The acreage is prospective for oil production from multiple formations including the Eagle Ford Shale, Buda, Austin Chalk, and Taylor Sand. Industry activity appears to be increasing in this area, and drilling permits were filed during the past two months for four horizontal wells located adjacent to this acreage with total depths ranging from 13,500 to 15,000 feet.

Management Comments

EnerJex’s CEO, Robert Watson, Jr., commented, “I am very pleased to announce this transaction, which exposes EnerJex and its shareholders to a significant amount of upside potential if commercial oil production is established on this acreage from any one of multiple potential deep horizontal oil resource plays.”

[davidc257]

ENRJ periodically posts what seem to be favorable events and yet the stock price continues to trend down - any idea as to why?

[dan_s]

I have not had much time to look closely at ENRJ, but it is on my list for an update after I see Q1 results. It appears there is a committed seller who sells a block into every increase in share price BUT I don't really know. Micro-Caps like this have very low trading volume so it doesn't take much to move them up or down. The fact that it is staying in a rather tight range is a good sign. - Dan

San Antonio, Texas / Denver, Colorado / Kansas City, Missouri (April 22, 2014) – EnerJex Resources, Inc. (OTCMarkets: ENRJ) (“EnerJex” or the “Company”) announced today the results of its recent workover program in the Company’s Niobrara Project located in Northeastern Colorado.

EnerJex has successfully completed working over eight vertical wells that produce natural gas from the Niobrara formation at a depth of approximately 2,500 feet. These wells contributed minimal production during the previous 12 months, and after producing for approximately 30 days, they have increased the Company’s gross operated Niobrara production by more than 300% from approximately 80 thousand cubic feet of natural gas (Mcf) per day to approximately 350 Mcf per day. The aggregate cost of completing all eight workovers was less than $100,000, and EnerJex has identified approximately 5 additional workover candidates. Including the Company’s overriding royalty interests, its gross production from this project is now approximately 475 Mcf per day.

EnerJex recently filed 17 drilling permits in Sedgwick County, where it has identified dozens of high-ranked drilling locations based on 3D seismic analysis. The Company is also in the process of soliciting bids for drilling and completion operations, along with pipeline construction and the upgrade of an existing tap into the Trailblazer pipeline that EnerJex previously acquired. Direct access to the Cheyenne Hub market significantly improves the economics of this project, along with the attractive terms of the Company’s leases which have a high net revenue interest of approximately 87.5%.

Several confirmation wells were drilled on EnerJex’s existing acreage in this area during the past few years which successfully confirmed the Company’s 3D seismic interpretation. One of these wells was flow tested and achieved a production rate of more than 600 Mcf per day with no water on a 16/64” choke with a bottom hole pressure of 771 pounds per square inch. Management believes this area is particularly attractive for development based on the Niobrara formation’s greater depth, higher reservoir pressure, and lower water saturation as compared to the Company’s existing area of production. Drilling and completion costs for new wells in this project area are expected to be approximately $225,000 with finding and development costs of less than $1.00 per net Mcf.

EnerJex’s Niobrara Project consists of approximately 58,000 acres which have been high-graded from an original position of 330,000 acres based on the analysis of 114 miles of 2D and 165 square miles (105,000 acres) of 3D seismic data. The Company has identified more than 150 high-ranked Niobrara drilling locations on its acreage based on 3D seismic analysis, which has historically yielded success rates of approximately 90% in this play. EnerJex’s acreage is also well situated with dircect access to the Cheyenne Hub market in immediate proximity to the 1,679-mile Rocky Mountain Express pipeline and the 436-mile Trailblazer pipeline.

Management Comments

EnerJex’s CEO, Robert Watson, Jr., commented, “I am pleased to announce the results of this highly economic workover program, and I eagerly await the expansion of our Niobrara project, which may include deeper and higher potential exploration targets. Our redevelopment of Adena Field remains on track, and I continue to be very excited about EnerJex’s oil prospects in Kansas, where the Company has identified hundreds of low risk drilling opportunities.”