JayHawk Starts Up First Production from 100 Well Program

JayHawk Energy, Inc. has completed all 20 wells of the first phase of its targeted 100-well Cherokee Basin Project, located in Southeast Kansas where the Company has over 95% ownership. JayHawk remained under budget throughout the drilling process and completed drilling these wells in less than one month. The Company has identified a combined 1,500 potential targets in the Uniontown and the Girard projects for future exploration.

JayHawk tied-in the first 2 wells of the 20 wells drilled of this Project to its wholly-owned 19-mile pipeline, which is located approximately less than one mile from the drilling targets. These 2 wells are cumulatively averaging over 60mcf per day, with the first well producing 92MCF/D and the second well 25MCF/D. The cumulative average production is over double what the Company had estimated. These wells were drilled to an average depth of between 550’ and 620’ with an estimated payback of approximately less than one year.

The Company found coals during drilling in the Summit, Mulky, Weir, Crowberg and Riverton Coals. Bartlesville sand (gas bearing) was found in 2 of the 20 wells. The dewatering procedures remain ongoing with construction to connect to the gathering system currently in process, and production is expected to increase or become more stabilized on a daily basis. The Company is presently producing out of only one zone per well and may later expand these wells to multi-zone producers, which should enhance production. The history of this region suggests a well life expectancy of approximately 17 years or greater.

Lindsay Gorrill, President & CEO of JayHawk Energy, said, “We are extremely excited to have completed our first phase of wells below budget and above production expectations. The results of our two newly tied-in wells appear promising, and we look forward to continuing such achievements as we develop additional wellbores in the Cherokee Basin region. As always, we remain committed to providing our valued shareholders and the investment community with the necessary diligence and dedication critical to bringing our projects to fruition.”