EnerJex Production At Black Oaks Continues To Improve
EnerJex Resources, Inc. reported key operating activities completed by its wholly owned operating subsidiaries, EnerJex Kansas (EJK) and DD Energy (DD), for the period ended March 31, 2008.
EnerJex confirmed last month an initial response to the secondary recovery efforts in the Black Oaks Project. The Company reported that oil production from producing wells adjacent to five injection wells had increased from three barrels to 15 barrels of oil per day (BOPD). These wells are now producing approximately 25 BOPD.
EnerJex also recently reported the completion of an independent audit of its financial statements at and for the nine-month period ended December 31, 2007, noting that the footnote regarding EnerJex's ability to continue as a going concern was removed.
EnerJex CEO Steve Cochennet commented, "We are pleased with the steady increase in production from the initial water flood response at Black Oaks, and our plans are to continue to aggressively expand the secondary recovery efforts on this project. In addition, our production in March was good in light of the very difficult, wet weather we experienced. We had a much higher average level of wells offline in March due to the inability to get into the field during much of that period."
The company has drilled a total of 100 injector and producing wells since April 2007. Gross oil production for March for all working interest owners of the Company's projects was approximately 248 BOPD. The Gas City Property, which will be jointly developed and operated pursuant to agreements with Euramerica Energy, Inc., also produced 100 mcf of gas per day (equivalent to 16.67 BOPD) during the month of March.