Today, domestic onshore oil company EnerJex Resources, Inc. announced that it has acquired an oil property in Eastern Kansas for $245,000. The property is close to EnerJex’s existing operations. It consists of 280 undeveloped acres and has the potential to host approximately 110 oil wells, nine of which already been drilled and cased with a 100% success rate.
To date, all of the existing wells have encountered two separate oil zones. In the next few months, EnerJex will comingle both zones and commence production relating to this property. EnerJex made it known that it is actively leasing additional acreage in this area.
EnerJex’s CEO, Robert Watson, Jr., remarked “I expect this acquisition to accretively add new oil production and reserves to EnerJex’s portfolio while decreasing our operating expenses per-barrel through economies of scale. In the near term, we intend to focus our Eastern Kansas activities on developing the Company’s existing portfolio of assets in order to increase production and cash flow. I expect EnerJex to make additional ‘bolt-on’ acquisitions in the future, once we have demonstrated our ability to execute.”