Exploration & Production | Drilling / Well Results

EnerJex Initiates Gas Production at J-Sand Well in Adena Field

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EnerJex Resources, Inc. has commenced natural gas production from the previously announced J-Sand well.

This well is flowing at a rate of approximately 500 thousand cubic feet (MCF) of liquids-rich natural gas per day on a 14/64" choke up 5.5" casing with a flowing pressure of 400 pounds per square inch. This equates to approximately 100 barrels of oil equivalent (BOE) per day based on an energy equivalent ratio of 6 MCF per barrel of oil and an expected yield of at least 1.4 gallons of natural gas liquids per MCF. Commencement of this production was achieved at a total cost of less than $100,000.

EnerJex's operations at Adena Field were primarily focused on maintaining existing production during the past month due to extremely cold weather and harsh operating conditions. Despite this challenge, the Company successfully completed testing one additional J-Sand oil well and plans to commence production from two new oil wells, including one that was previously announced, within the next two weeks. Operating conditions have returned to normal, and EnerJex plans to continue aggressively reactivating and recompleting oil wells in Adena Field throughout 2014.

According to the Colorado Oil and Gas Conservation Commission, Adena is the third largest oil field in the history of Colorado behind Rangely and Wattenberg, having produced 75 million barrels of oil and 125 billion cubic feet of natural gas. Nearly all of the producing wells in Adena Field were temporarily abandoned or shut-in during the secondary recovery phase in the mid-1980s when oil prices collapsed, and only a small number of wells have been produced since that time. Approximately 130 wells are currently shut-in or temporarily abandoned, of which the Company has initially identified approximately 75 wells to be reactivated in the J-Sand formation or recompleted in the D-Sand formation.

EnerJex's CEO, Robert Watson, Jr., commented, "I am pleased to announce these developments including a further increase in the Company's natural gas production and additional validation of our oil prospects at Adena Field. EnerJex is also in the process of working over multiple natural gas wells in its Niobrara Project located in Northeastern Colorado. These wells have contributed minimal production during the past year, and I look forward to updating shareholders on the results of this program during the coming weeks."