COEUR D'ALENE, Idaho, Sept. 27, 2011 /PRNewswire/ -- JayHawk Energy, Inc. (OTC Markets: JYHW) announced today it has delivered in excess of 1695 BOE (Barrels of Oil Equivalent) at $71.96 per barrel, totalling gross revenues of $122,008. Due to unusually poor weather and road conditions in North Dakota over the past several months, JayHawk was previously unable to produce and deliver these barrels until now. As conditions have improved, 3 out of the Company's 5 horizontal wells have come back online and are producing at their usual rate of production. JayHawk's intent, over the course of the rest of the year, is to enhance the production rate of its current wells and bring the other 2 horizontal wells on line. The Company's focus remains on its North Dakota properties as management has assessed as its best opportunity for increased production remains in the Mississippian/Bakken/Three Forks formations.
Lindsay Gorrill, President of JayHawk Energy, stated, "The inclement weather, subsequent flooding and poor road conditions have delayed our delivery of production in the last 6 months. However, these conditions should not encumber us moving forward for the remaining 2011 calendar year. We expect normal operations and production which will provide flexibility to pursue additional opportunities within the region."
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JayHawk Energy, Inc.
About JayHawk Energy
JayHawk Energy, Inc. is a managed risk, oil and gas exploration/exploitation, development and production company with activities focused on two major projects in the Cherokee Basin, Kansas and the Williston Basin, North Dakota. For more information please visit www.jayhawkenergy.com.
Cautionary Note to U.S. Investors -- The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this press release, such as probable, possible and potential, that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Examples of such disclosures would be statements regarding "probable," "possible," or "recoverable" reserves among others.
Management hopes these transactions will bring additional value to the shareholders of JayHawk Energy. There is no guarantee that the projects that JayHawk has recently acquired will increase the value of its shares of common stock, or that JayHawk will acquire rights to explore and operate any other such projects, or that in the event that it acquires rights to explore and operate other such projects, that these actions will be successful or increase the value of JayHawk's common stock.
This press release may contain forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbor created by those sections. There are many factors that could cause our expectations and beliefs about our plans to acquire additional exploration or production properties, our plans to drill or our drilling results to fail to materialize: competition for new acquisitions, availability of capital, unfavorable geologic conditions, the complexity of coal bed methane exploration and production, and prevailing prices for natural gas and general regional economic conditions. JayHawk assumes no obligation to update the information contained in this press release.
SOURCE JayHawk Energy, Inc.