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FOR IMMEDIATE RELEASE
ENERJEX ANNOUNCES $4 MILLION NON-CORE ASSET SALE
San Antonio, Texas (December 21, 2011) – EnerJex Resources, Inc. (OTCMarkets:ENRJ) (“EnerJex” or the “Company”), a domestic onshore oil company, announced today that it has sold certain non-core assets located in Eastern Kansas for $4 million in cash. This transaction is expected to further streamline the Company’s operations and lower its cost structure by improving economies of scale in EnerJex’s core areas of operation. Proceeds from the sale are expected to be utilized to further develop the Company’s Mississippian Project in Kansas.
EnerJex’s Mississippian Project consists of a 90% working interest in 2,820 acres plus a 90% working interest in an additional 1,280 acres that the Company may acquire upon achieving certain drilling milestones. EnerJex has identified hundreds of infill drilling locations on these leases, which management believes will yield approximately 3 million barrels of recoverable oil.
The Company intends to update investors on its development plans for this project in the coming weeks. In addition, EnerJex will soon provide an operational update on its Rantoul Project, where the Company has been actively drilling new wells for the past two months.
Management Comments
EnerJex’s CEO, Robert Watson, Jr., commented, “This is an important transaction for EnerJex because it will enable the Company to aggressively develop its Mississippian Project with no dilution to shareholders. It has been less than twelve months since EnerJex was transformed and I am proud of everything our team has accomplished. The Company’s Board of Directors remains intensely focused on per-share value creation, and we are pursuing additional strategic initiatives aimed at increasing oil production, reserves, and cash flow in an accretive manner 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.enerjexresources.com.
4040 Broadway Street, Suite 305 | San Antonio, TX 78209 | P: 210.451.5545 | F: 210.451.5546 | WWW.ENERJEXRESOURCES.COM
This press release and the materials referenced herein include "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 any current or future transaction, 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: whether acquired properties will produce at levels consistent with that of other nearby properties and with management’s expectations; market conditions; the ability of EnerJex to obtain financing for continued drilling; the costs of operations; delays, and any other difficulties related to producing oil; the ability of EnerJex to integrate the newly purchased assets and any newly acquired employees; the price of oil; EnerJex's ability to market and sell produced minerals; the 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 are set forth in our Form 10-K filed with the United States Securities and Exchange Commission and our Form 10-Q. 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. EnerJex’s production forecasts are dependent upon many assumptions, including estimates of production decline rates from existing wells and the outcome of future drilling activity. Although EnerJex believes the expectations and forecasts reflected in these and other forward-looking statements are reasonable, it can give no assurance they will prove to have been correct. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties.
Contact
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Brad Holmes, Investor Relations
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Robert Watson, Jr. CEO
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(713) 654-4009
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(210) 451-5545
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B_Holmes@att.net
4040 Broadway Street, Suite 305 | San Antonio, TX 78209 | P: 210.451.5545 | F: 210.451.5546 | WWW.ENERJEXRESOURCES.COM