Exploration & Production | Production Rates

EnerJex Starts Up Production at Adena Field; Will Bring Third Well On-Line

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   |    Thursday,March 27,2014

EnerJex Resources, Inc. has reported an update on its operating activities in Morgan County, Colorado, where the Company owns a 100% working interest in approximately 19,000 acres covering the majority of Adena Field.

EnerJex has successfully initiated oil production from two previously announced wells that were reactivated in the J-Sand formation at a depth of approximately 5,500 feet. These wells have been producing for approximately three weeks at a combined rate of approximately 20 barrels of oil per day (BOPD), inline with management's expectations.

The Company is currently in the process of bringing an additional J-Sand well online, which has previously been tested and is expected to begin producing in the coming weeks. EnerJex has also just begun testing another J-Sand well, and it 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 results, which continue to validate the potential of Adena Field. EnerJex has also successfully completed working over eight of its operated Niobrara natural gas wells located in Northeastern Colorado, and I look forward to announcing the results from this program once production rates have stabilized."