JayHawk Energy has commenced drilling the first well of the Company's initial two well vertical oil development program located at its Crosby Field in Divide County, North Dakota. JayHawk is the operator of the well on its own behalf, and that of its joint venture partners, and expects that each well will take approximately 10 days to drill to total depth. This project begins the development drilling program, previously announced by the Company, to fully exploit the oil pool JayHawk believes exists within the Company's Crosby, North Dakota holdings.

JayHawk's President, Marshall Diamond-Goldberg, commented, "We are very excited about the potential which we believe exists at Crosby and which has several highly productive analogue fields to the northwest across the Canada/U.S. border. Should our wells be commercially successful, the opportunity exists for the drilling of a substantial number of additional development locations on Company controlled lands."

JayHawk intends to follow the drilling of its first well with the development of a second location utilizing the same drilling rig. It is expected that both wells will be drilled and evaluated by early April.