Esenjay Exploration, Inc. Announces Strategic Direction

Apr 10, 2001, 01:00 ET from Esenjay Exploration, Inc.

    HOUSTON, April 10 /PRNewswire/ -- Esenjay Exploration, Inc. (Nasdaq:   ESNJ)
 today announced that it has completed the evaluation of its strategic
 alternatives.  The Board of Directors has determined that the most effective
 strategy for maximizing shareholder value in the current industry environment
 is for the Company to delineate and develop the two recent South Texas natural
 gas discoveries it has recently made in South Texas and to continue to
 aggressively drill new natural gas exploration prospects within its large
 3-D seismic project inventory.
     Esenjay commenced a strategic evaluation process in November 2000 and
 retained Randall & Dewey, Inc. and Deutsche Bank Securities, Inc. as its
 advisors.  This evaluation was initiated in response to management's and the
 Board of Directors' belief that the Company's stock did not adequately reflect
 the substantial value of its large undrilled natural gas oriented 3-D seismic
 exploration inventory.  Since that time, Esenjay has discovered the Runnells
 Gas Field and the Hordes Creek Gas Field (the Pereira Children's Trust #2
 discovery well, now renamed the Hamman & Anderson #2), both of which have
 significant reserve potential.  Management believes that the discovery of
 these new gas fields has further increased this "value gap."  After an
 extensive evaluation, the Company and its advisors have determined that the
 sale of Esenjay would be premature pending the delineation of these recent
 discoveries.
     David W. Berry, Esenjay's Chairman, said, "Over the last several years,
 Esenjay has built a large inventory of high quality, 3-D seismic defined
 natural gas prospects with unrisked reserve potential approaching one trillion
 cubic feet net to the Company.  We have begun to demonstrate the value of our
 prospect inventory by drilling and converting this potential into proved gas
 reserves.  Over the next 12 months, the Company has the opportunity to
 dramatically increase its proved reserves if we successfully develop our two
 recently discovered natural gas fields and we continue to be aggressive in the
 drilling of exploration wells on our other high potential prospects."
     "Esenjay's near term outlook has been enhanced considerably by two
 developments," Mr. Berry continued.  "First, we have several prospects that
 are on trend with and have many geologic characteristics in common with the
 Company's recent natural gas discoveries.  Second, production should rise
 significantly this year and, given the current favorable natural gas price
 environment, Esenjay should enjoy additional financial strength that will
 allow it to continue its aggressive drilling program.  As a result, we are
 optimistic that 2001 will be a year of substantial reserve growth and value
 creation that will be recognized in the marketplace.  Nonetheless, we remain
 open to transactions that can deliver more value to shareholders."
     Esenjay Exploration, Inc. (www.esenjay.com) is an independent energy
 company engaged in the exploration for and the development of natural gas and
 oil.  It has an extensive inventory of technology enhanced natural gas
 exploration projects located along the Texas and Louisiana onshore gulf coast.
 It is focused on the generation and enhancement of these projects utilizing
 computerized exploration technologies and 3-D seismic data prior to drilling.
 
          [Cautionary Statement Regarding Forward-Looking Information]
     Certain statements contained herein that set forth management's
 intentions, plans, beliefs, expectations or predictions of the future are
 forward-looking statements.  In all cases Esenjay's actual results could
 differ materially from those projected in any forward-looking statements.  The
 risks and uncertainties include, but are not limited to, potential unfavorable
 or uncertain results of completion operations, operational uncertainties,
 risks associated with quantities of total reserves and rates of production
 from new gas and oil reserves and pricing assumptions regarding said reserves,
 potential delays in the timing of planned operations, potential cost overruns,
 regulatory uncertainties, as well as general industry and market conditions.
 Additional information concerning factors that could cause actual results to
 vary materially is contained in Esenjay's periodic filings with the U.S.
 Securities and Exchange Commission ("SEC"), all of which may be obtained by
 contacting Esenjay or the SEC.
 
 

SOURCE Esenjay Exploration, Inc.
    HOUSTON, April 10 /PRNewswire/ -- Esenjay Exploration, Inc. (Nasdaq:   ESNJ)
 today announced that it has completed the evaluation of its strategic
 alternatives.  The Board of Directors has determined that the most effective
 strategy for maximizing shareholder value in the current industry environment
 is for the Company to delineate and develop the two recent South Texas natural
 gas discoveries it has recently made in South Texas and to continue to
 aggressively drill new natural gas exploration prospects within its large
 3-D seismic project inventory.
     Esenjay commenced a strategic evaluation process in November 2000 and
 retained Randall & Dewey, Inc. and Deutsche Bank Securities, Inc. as its
 advisors.  This evaluation was initiated in response to management's and the
 Board of Directors' belief that the Company's stock did not adequately reflect
 the substantial value of its large undrilled natural gas oriented 3-D seismic
 exploration inventory.  Since that time, Esenjay has discovered the Runnells
 Gas Field and the Hordes Creek Gas Field (the Pereira Children's Trust #2
 discovery well, now renamed the Hamman & Anderson #2), both of which have
 significant reserve potential.  Management believes that the discovery of
 these new gas fields has further increased this "value gap."  After an
 extensive evaluation, the Company and its advisors have determined that the
 sale of Esenjay would be premature pending the delineation of these recent
 discoveries.
     David W. Berry, Esenjay's Chairman, said, "Over the last several years,
 Esenjay has built a large inventory of high quality, 3-D seismic defined
 natural gas prospects with unrisked reserve potential approaching one trillion
 cubic feet net to the Company.  We have begun to demonstrate the value of our
 prospect inventory by drilling and converting this potential into proved gas
 reserves.  Over the next 12 months, the Company has the opportunity to
 dramatically increase its proved reserves if we successfully develop our two
 recently discovered natural gas fields and we continue to be aggressive in the
 drilling of exploration wells on our other high potential prospects."
     "Esenjay's near term outlook has been enhanced considerably by two
 developments," Mr. Berry continued.  "First, we have several prospects that
 are on trend with and have many geologic characteristics in common with the
 Company's recent natural gas discoveries.  Second, production should rise
 significantly this year and, given the current favorable natural gas price
 environment, Esenjay should enjoy additional financial strength that will
 allow it to continue its aggressive drilling program.  As a result, we are
 optimistic that 2001 will be a year of substantial reserve growth and value
 creation that will be recognized in the marketplace.  Nonetheless, we remain
 open to transactions that can deliver more value to shareholders."
     Esenjay Exploration, Inc. (www.esenjay.com) is an independent energy
 company engaged in the exploration for and the development of natural gas and
 oil.  It has an extensive inventory of technology enhanced natural gas
 exploration projects located along the Texas and Louisiana onshore gulf coast.
 It is focused on the generation and enhancement of these projects utilizing
 computerized exploration technologies and 3-D seismic data prior to drilling.
 
          [Cautionary Statement Regarding Forward-Looking Information]
     Certain statements contained herein that set forth management's
 intentions, plans, beliefs, expectations or predictions of the future are
 forward-looking statements.  In all cases Esenjay's actual results could
 differ materially from those projected in any forward-looking statements.  The
 risks and uncertainties include, but are not limited to, potential unfavorable
 or uncertain results of completion operations, operational uncertainties,
 risks associated with quantities of total reserves and rates of production
 from new gas and oil reserves and pricing assumptions regarding said reserves,
 potential delays in the timing of planned operations, potential cost overruns,
 regulatory uncertainties, as well as general industry and market conditions.
 Additional information concerning factors that could cause actual results to
 vary materially is contained in Esenjay's periodic filings with the U.S.
 Securities and Exchange Commission ("SEC"), all of which may be obtained by
 contacting Esenjay or the SEC.
 
 SOURCE  Esenjay Exploration, Inc.

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