SAN ANTONIO, Texas, Feb. 15, 2012 /PRNewswire/ -- EnerJex Resources, Inc. (OTCMarkets: ENRJ) ("EnerJex" or the "Company"), a domestic onshore oil company, announced today that it has completed drilling 69 new wells in its Rantoul Project with a 100% success rate. These wells were funded by the general partnership that was recently formed to develop this project, and an additional 81 wells are expected to be funded in tranches over the next 12 months.

During the past four months, EnerJex has drilled 42 new production wells and 27 new water injection wells. Of the new production wells, 24 have begun producing oil and the remaining 18 are expected to be online by the end of this month. Six of the new injection wells are online and the remaining 21 are expected to begin injecting water shortly.

The Company typically drills one water injection well in middle of every four production wells. Water is injected into the oil producing zone in order to maintain optimal reservoir pressure and drive additional oil to the producing wells. This process, known as "secondary recovery", accelerates and increases recovery of oil from the reservoir.

EnerJex encountered a second oil zone deeper than the primary target zone in more than 15 of the 42 new production wells, and the Company intends to commingle and produce both zones together. The majority of these wells have not begun producing yet, and they are expected to be online by the end of this month.

Production from the Rantoul Project has averaged approximately 125 barrels of oil per day (BOPD) during the past 30 days, and it is expected to exceed 150 BOPD once the remaining wells are brought online. EnerJex currently owns 88.25% of the general partnership that was formed to develop the Rantoul Project, and it will own 75% if the remaining $2.65 million is funded by its partners as scheduled.  

Management Comments

EnerJex's CEO, Robert Watson, Jr commented, "These assets are characterized by low decline rates and a long production life, providing an excellent platform to support the Company's future growth. EnerJex is contemplating the formation of additional general partnerships to develop its extensive inventory of low risk development drilling locations. I believe the partnership vehicle is a win-win for both the company and the investors. It is designed to provide meaningful tax benefits and attractive returns to investors, while enabling the Company to expedite the development of its assets in a low risk and accretive manner for stockholders." 

About EnerJex Resources, Inc.

EnerJex is a domestic onshore oil company with producing assets located in Eastern Kansas and South Texas. The Company's primary business is to acquire, develop, explore and produce oil properties onshore in the United States. Additional information is available on the Company's website at www.enerjexresources.com.

Forward-Looking Statements

This press release and the materials referenced herein include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give EnerJex's current expectations or forecasts of future events. The statements in this press release regarding the acquisition of operating assets and related agreements; any implied or perceived benefits from any current or future transaction, and any other effects resulting from any of the above, are forward-looking statements. Such statements involve risks and uncertainties, including but not limited to: whether acquired properties will produce at levels consistent with that of other nearby properties and with management's expectations; market conditions; the ability of EnerJex to obtain financing for continued drilling; the costs of operations; delays, and any other difficulties related to producing oil; the ability of EnerJex to integrate the newly purchased assets and any newly acquired employees; the price of oil; EnerJex's ability to market and sell produced minerals; the risks and effects of legal and administrative proceedings and governmental regulation; future financial and operational results; competition; general economic conditions; and the ability to manage and continue growth. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. Important factors that could cause actual results to differ materially from the forward-looking statements are set forth in our Form 10-K filed with the United States Securities and Exchange Commission and our Form 10-Q. EnerJex undertakes no obligation to revise or update such statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. EnerJex's production forecasts are dependent upon many assumptions, including estimates of production decline rates from existing wells and the outcome of future drilling activity. Although EnerJex believes the expectations and forecasts reflected in these and other forward-looking statements are reasonable, it can give no assurance they will prove to have been correct. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties.

SOURCE EnerJex Resources, Inc.

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