SAN ANTONIO, May 15, 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-Q for the quarter ended March 31, 2012. A copy of this document is available through the Company's website at www.enerjex.com.
Highlights for the first quarter include the following:
- Production of 19,485 barrels of oil, a 103% increase adjusted for asset sales.
- Record revenue of $1.9 million, a 95% increase adjusted for asset sales.
- Operating expenses of $31 per net barrel of oil produced, a 45% decrease.
- Adjusted earnings before interest, income tax, depletion and amortization ("EBITDA") of $788,015.
- Completion of drilling 7 new oil wells in EnerJex's Mississippian Project with a 100% success rate.
- Completion of drilling 14 new oil wells and 19 new secondary recovery water injection wells in the Company's Rantoul Project with a 100% success rate.
- Successful initiation of production from three high-impact oil wells in EnerJex's El Toro Project that began producing at a combined rate of more than 100 barrels of oil per day.
Production volumes during the three months ended March 31, 2012 were 19,485 barrels of oil compared to 14,780 barrels of oil during the three months ended March 31, 2011. Excluding production from properties that were sold during December 2011, production was 9,588 barrels of oil during the three months ended March 31, 2011.
Revenues were $1,902,892 for the first quarter of 2012 compared to $1,369,167 for the first quarter of 2011. Excluding revenue from properties that were sold during December 2011, revenue was $977,380 for the first quarter of 2011. The Company realized an average oil price of $97.66 during the first quarter of 2012 compared to $92.64 during the first quarter of 2011.
Lease operating expenses were $609,079 or $31.26 per net barrel of oil produced during the three months ended March 31, 2012 compared to $847,564 or $57.35 per net barrel of oil produced during the three months ended March 31, 2011.
Operating income was $160,459 for the first quarter of 2012 compared to an operating loss of $276,443 for the first quarter of 2011. Adjusted to exclude non-recurring expenses, operating income was $352,954 for the first quarter of 2012.
EBITDA was a loss of $591,419 for the three months ended March 31, 2012 compared to a loss of $2,456,573 for the three months ended March 31, 2011. Adjusted to exclude non-recurring expenses and the effect of derivative contracts, EBITDA was $788,015 during the three months ended March 31, 2012.
Net income was a loss of $1,081,682 during the first quarter of 2012 compared to a loss of $2,846,795 during the first quarter of 2011. Adjusted to exclude non-recurring expenses and the effect of derivative contracts, net income was $297,752 for the first quarter of 2012.
EnerJex's CEO, Robert Watson, Jr., commented, "EnerJex's first quarter results clearly demonstrate the positive impact of our turnaround efforts since the Company was transformed at the end of 2010. EnerJex is aggressively drilling new wells in both of its core projects in Kansas, and I expect meaningful oil production growth for the foreseeable future. In addition, I expect further operating cost improvements as the Company continues to realize economies of scale in its core areas of operation."
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.enerjex.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 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.
Brad Holmes, Investor Relations
Robert Watson, Jr. CEO
SOURCE EnerJex Resources, Inc.