EnerJex Completes 50th New Well in Rantoul Project

SAN ANTONIO, Jan. 5, 2012 /PRNewswire/ -- EnerJex Resources, Inc. (OTCMarkets:ENRJ) ("EnerJex" or the "Company"), a domestic onshore oil company, announced today that it has completed drilling 50 new wells in its Rantoul Project located in Eastern Kansas. In addition, the Company provided the following update on its Rantoul Project operations.

During the past three months, EnerJex has drilled 35 new production wells and 15 new water injection wells with a 100% success rate. Sixteen of the new production wells encountered a secondary oil zone deeper than the primary target zone, and the Company intends to commingle and produce both zones together. Of significance, the secondary zone appears to increase in thickness and reservoir quality under a portion of EnerJex's acreage which had never been tested.

Twelve of the new production wells were recently completed and have begun producing oil, and the remaining 38 wells are in various stages of completion. EnerJex is actively drilling with two rigs and is scheduled to drill at least 20 additional wells during the next six weeks if weather cooperates. Production from the Rantoul Project is currently in excess of 100 barrels of oil per day (BOPD), and management expects this figure to increase significantly in the coming months as additional wells are brought online. 

The Company expects to drill at least 100 additional wells in the Rantoul Project and achieve stabilized production in excess of 200 BOPD, not including any new potential from the prospective deeper zone. EnerJex owns an 88.25% interest in the Rantoul Project through its interest in "Rantoul Partners", a general partnership further described in the Company's press release dated December 19, 2011.

Management Comments

EnerJex's CEO, Robert Watson, Jr., commented, "I am very pleased with our drilling results and the rapid progress we have made over the past three months, during a season which is typically limited by severe weather conditions. The deeper oil zone we encountered in this drilling program is certainly encouraging, and I look forward to updating investors on our progress in the coming weeks as we continue to develop this project."

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.

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.