EnerJex Resources Doubles Acreage In Mississippian Oil Project

Bought acreage in Woodson County doubling its position in its Mississippian oil project.

EnerJex Resources Inc. (OTC: ENRJ) announced Dec. 31 that it has doubled its acreage position in the company's Mississippian Oil Project from 2,840 gross (2,556 net) acres to 6,370 gross (5,267 net) acres.

The expansion acreage is located in Woodson County, Kan., in close proximity to San Antonio, Texas-based EnerJex's existing operations. Included is a 90% working interest in 1,200 acres located directly adjacent to acreage that the company successfully developed in 2013, which is in the early stage of secondary recovery. EnerJex expects to drill some 100 oil wells on this new acreage, and management expects this expansion to contribute new proved reserves to the company's year-end reserve report. EnerJex earned this acreage after achieving certain development milestones related to the adjacent acreage, and it expects to earn another 320 acres in this area after achieving additional development milestones.

Also included in the expansion is a 70% working interest in 2,330 acres located about five miles away from the company's producing properties. This acreage is exploratory and has higher potential for oil production and reserves due to higher anticipated reservoir pressure. EnerJex has already participated in drilling two new wells on this acreage during the past month, both of which appear to be successful and are in the process of being completed.

"I expect this expansion to result in a significant increase in shareholder value, and I am excited about the exploration potential of the new acreage position. While I am pleased to make this announcement, it does not temper my enthusiasm for the company's recently completed merger," Robert Watson, Jr., EnerJex's CEO, said in the release.