JayHawk Energy, Inc. announced strategic drilling & construction program.
"The execution of the purchase & sale agreements in the last two months has placed JayHawk Energy, Inc. into a position of several development opportunities," stated Lindsay Gorrill, President and CEO.
JayHawk Energy, Inc. has compiled over 51,000 acres in the Bourbon and Crawford counties of Kansas through the initial acquisition of 35,000 acres in Bourbon County (known as our Uniontown project), and the Galaxy Energy, Inc. and the Missouri Gas Partners acquisitions (known as the Girard project). These projects bring 100% working interest to JayHawk Energy in over 51,000 acres. "We intend to be a major operator in the state of Kansas with this significant program coming together," says Gorrill.
The acquisition of the pipeline was a critical piece of our strategic plan (see news release dated Feb. 28, 2008), as our entire position and drill targets in the 51,000 acres can be tied into our 100% owned 16 mile pipeline. This pipeline is tied into a 2 million cubic ft sales pipeline and allows for substantial growth.
Over the next 6-8 months we will be dewatering and tying in over 30 already completed wells and drilling another 40 wells. Our goal is to have over 70 wells on stream and producing before the end of the year. "An average gas well in the Cherokee basin produces approx. 30 to 40 mcf per well, which is only the tip of the iceberg, as we have identified approximately 4,100 drilling targets, and the initial 40 wells will help outline a much larger future drilling program to derive benefit from our very large land position," stated Lindsay Gorrill.
"We are ready to commence our program," stated Gorrill. We have identified and booked contractors to begin working immediately. "These are exciting times for our company and its shareholders, as we look forward to building a solid and valuable company," concluded Lindsay Gorrill.
Cautionary Note to U.S. Investors -- The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this press release, such as probable, possible and potential, that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Examples of such disclosures would be statements regarding "probable," "possible," or "recoverable" reserves among others.
Management hopes these transactions will bring additional value to the shareholders of JayHawk Energy. There is no guarantee that the projects that JayHawk has recently acquired will increase the value of its shares of common stock, or that JayHawk will acquire rights to explore and operate any other such projects, or that in the event that it acquires rights to explore and operate other such projects, that these actions will be successful or increase the value of JayHawk's common stock.
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