EnerJex has successfully drilled and completed four new oil wells at its Tri-County Project located in Franklin County, KS. Each well encountered the target oil reservoir and three of the four encountered an additional deeper oil reservoir that is expected to be productive. The company plans to drill more than 100 new oil wells in this area and expects to complete six additional oil wells by the end of February.
The Tri-County Project represents one of EnerJex's most prolific assets and these new wells are expected to significantly increase the Company's oil production in the near term.
EnerJex also announced today that it has secured $650,000 of project financing from two joint venture partners on a turnkey basis to drill and complete 14 new wells on an undeveloped lease in Douglas County that contains 1 discovery oil well and has the potential for up to 60 additional oil wells. EnerJex will serve as the operator and retain a 30% interest in the project.
EnerJex's CEO, Robert Watson, Jr., commented, "Today's announcements mark only the tip of the iceberg as it relates to our drilling plans for 2011. EnerJex has a tremendous inventory of low-risk oil development drilling locations and we are currently in the process of high-grading these projects, some of which the Company will seek outside capital to develop. In addition, we have nearly finished completing deferred field maintenance work on our Eastern Kansas properties, which is expected to meaningfully increase the Company's oil production in the months ahead. We intend to accelerate our drilling activities as the year progresses and look forward to updating investors on our results."
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