EnerJex Resources Announces Record Proved Reserves and a 650% Reserve Replacement Ratio for 2011 COMPANY REPORTS 2011 RESULTS ACHIEVING REVENUE GROWTH OF 64% AND PRODUCTION GROWTH OF 34%
SAN ANTONIO, Texas, April 17, 2012 /PRNewswire/ -- EnerJex Resources, Inc. (OTCMarkets:ENRJ) ("EnerJex" or the "Company"), a domestic onshore oil company, announced today that it has filed its SEC Form 10-K detailing the Company's results of operations for 2011.
Reserve Report Highlights:
A summary of EnerJex's 2011 reserve report is included in its 10-K filing which reflects the following:
- Proved reserves increased 17% to 2.71 million barrels of oil despite the sale of 420,000 barrels of proved reserves in 2011.
- PV-10 value (present value of pre-tax future net cash flow discounted at 10% per annum) of proved reserves increased 71% to $53.2 million assuming an average oil price of $89.30 per barrel.
- Probable reserves increased 555% to 1.31 million barrels of oil.
- PV-10 value of probable reserves increased 670% to $19.2 million assuming an average oil price of $90.01 per barrel.
- Combined proved and probable reserves increased 60% to 4.0 million barrels of oil.
- PV-10 value of combined proved and probable reserves increased 115% to $72.4 million assuming an average oil price of $89.53.
- 650% of 2011 oil production was replaced by proved reserve additions.
Significant 2011 Events:
- Among the milestones achieved by EnerJex during 2011, the Company:
- Doubled its exposure to its Mississippian Project in Kansas.
- Completed 88 development wells in Kansas with a 100% success rate.
- Completed 3 high-impact wells in Texas with a 100% success rate.
- Closed a new $50 million senior credit facility.
- Formed a general partnership with a $5 million carried interest, of which approximately $3 million remains to be deployed.
- Generated $5.5 million of proceeds from the sale of non-core assets, and meaningfully improved its operating cost structure.
EnerJex's CEO, Robert Watson, Jr., commented, "2011 was a transformation year for EnerJex, and I am proud of our team's accomplishments, which have positioned the Company for rapid and profitable growth in 2012. Importantly, our cost structure has been signifcantly improved, and I expect operating expenses to decline by nearly 50% this year on a per-barrel basis. Additionally, I want to point out that EnerJex incurred more than $1 million of non-recurring expenses during 2011. The Company is actively drilling new wells with three rigs in its Rantoul and Mississippian projects, and we presently expect to add an additional rig by the end of the month. EnerJex's Board of Directors remain intensely focused on creating per-share value for our stockholders."
About EnerJex Resources, Inc.
EnerJex is a domestic onshore oil company with 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 web site at www.enerjexresources.com.
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 deploying drilling rigs and 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.
Brad Holmes, Investor Relations
Robert Watson, Jr. CEO
SOURCE EnerJex Resources, Inc.