Since April of 2007, EnerJex has closed four acquisitions, drilled 90 new wells (with a 98% success rate), and increased its pre-tax PV-10 (present value) of Proved Reserves by more than $30,900,000 or 1.2 million barrels of oil equivalent. EnerJex has also identified more than 400 additional drilling locations on its existing leases.
Based on production levels achieved during the end of the December 31, 2007 quarter, EnerJex became operationally cash-flow positive, on a non-GAAP basis. As a result, EnerJex will continue to pursue its drilling programs using internally generated funds and other capital alternatives.
EnerJex's CEO, Steve Cochennet, stated, "We are extremely pleased with the results of our efforts to-date. With a 98% drilling success rate and the identification of 400 additional drillable locations--plus quickly building to $30.9 million in PV-10 Proved Reserves as well as $17.2 million in Probable Reserves -- we are confident that we have tremendous growth potential ahead of us. We look forward to seeing dramatic results in 2008 and beyond."
Proved reserves as of March 31, 2007 were zero. As of December 31, 2007, proved reserves had grown to $30.9 million and probable reserves had grown to $17.2 million. The reserve values were prepared by McCune Engineering, an independent licensed petroleum engineering firm based in Kansas, encompassing EnerJex's oil and gas development projects in Eastern Kansas. The McCune report, which used for its analysis, an oil price of $84.25 per barrel of oil and $5.657 for natural gas as at December 31, 2007, are estimates and should not be interpreted as being exact quantities. They may or may not be actually recovered and the revenues stated in the report may be more or less than what will ultimately be recovered. While the reserve estimates presented in the report were believed reasonable at December 31, 2007, several factors may lead to a future revision of the reserve estimates presented in the report, including general economics, EnerJex's operations and reservoir performance.
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