EnerJex Exceeds Production
Threshold Early With Strong Drilling and Work-Over Initiative
12/11/2007
EnerJex Resources, Inc. (OTC Bulletin Board: EJXR)
("EnerJex") today reported that its
operating subsidiaries have exceeded EnerJex's
Debenture covenant that requires EnerJex to meet an
average daily 180 Barrels of Oil Equivalent Per Day (BOPDE) starting November
15, 2007 and ending December 15, 2007.
Steve Cochennet, EnerJex's
Chairman and CEO, noted, "Exceeding our average daily BOPDE Debenture covenant
early is a tremendous milestone for us. Our team has worked hard and this
achievement is an acknowledgement to us and to the market that our strategy and
business
plan are sound and on track."
The Debentures have a term of three years, carry an interest rate of 10%, are secured by most of the assets of EnerJex
Kansas (EJK), a wholly owned operating subsidiary, and are guaranteed by EnerJex. The Debentures contain certain covenants,
including one that requires EnerJex to meet certain
average daily BOPDE at various future dates. If EnerJex
does not meet this covenant, it will be required to issue up to an additional
12 million shares of common stock
to the Debenture Holders. To avoid issuing additional shares, EnerJex must have production of the equivalent to:
-- 180 BOPDE by December 31, 2007; -- 182 BOPDE by June 30, 2008; -- 170
BOPDE by December 31, 2008; and -- 206 BOPDE by June 30, 2009.
Cochennet concluded, "Based on the positive
results from our efforts through the increase in number of wells drilled,
current production flows, and an inventory of over 350 drilling locations, I am
confident we will continue to be in compliance with our Debenture
covenants."
About EnerJex Resources, Inc.
EnerJex is an oil and natural gas acquisition,
exploration and development company. Operations, conducted solely through EnerJex
Once acquired, EnerJex implements an exploration
and development program
to accelerate the recovery of the existing oil and natural gas as well as to
explore for additional reserves. More information on EnerJex
and its operations can be found on its website:
http://www.EnerJexResources.com.
Forward-Looking Statement
The statements in this press release regarding the BOPDE from EnerJex wells, number of current and anticipated wells, current operations, future outlook
, and any other effects resulting from any of the above forward-looking statements involve risks and uncertainties. Such risks and uncertainties, include, but are not limited to: the continued production of oil at historical rates; continued production at above the threshold levels; costs of operations and development; delays, and any other difficulties related to producing oil; rig availability; price of oil; exploitation and exploration successes; marketing and sales of produced minerals; risks and effects of legal and administrative proceedings and governmental regulation; actions taken and to be taken by the government as a result of political and economic conditions; future financial and operational results; competition; general economic, market or business conditions; and the ability to manage and continue growth. Although EnerJex believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements.SOURCE EnerJex Resources, Inc.