SOURCE: EnerJex Resources, Inc.
SAN ANTONIO, TX, via eTeligis, 3/17/2014 9:00:00 AM
EnerJex Resources Announces 488% Increase in Year End 3P Reserves and Proved PV-10 of $102 Million
EnerJex Resources, Inc. (OTCQB: ENRJ) ("EnerJex" or the "Company") announced today its estimated reserves for the year ending December 31, 2013. These results include the addition of assets that were acquired through EnerJex's merger with Black Raven Energy, Inc. at the end of September 2013.
Reserve Report Highlights:
Record proved reserves of 5.8 million barrels of oil equivalent (BOE), a 98% increase compared to the prior year.
Record proved, probable, and possible (3P) reserves of 17.2 million BOE, a 488% increase compared to the prior year.
Record proved PV-10 value (present value of pre-tax future net cash flow discounted at 10% per annum) of $102.4 million, a 68% increase compared to the prior year.
Record 3P PV-10 value of $184.2 million, a 203% increase compared to the prior year.
EnerJex's 2013 3P reserve estimates are based on an average net price of $88.28 per barrel of oil and $3.45 per thousand cubic feet of natural gas. Based on NYMEX strip pricing as of March 10, 2014, the PV-10 value of the 3P reserves attributed to the Company's Niobrara assets, which account for the majority of its 3P natural gas reserves, would increase by $22.6 million or 52% from $43.5 million to $66.1 million.
Reserve Report Summary:
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EnerJex's CEO, Robert Watson, Jr., commented, "I am pleased to announce these results, which demonstrate the vast amount of oil and natural gas resources that EnerJex plans to aggressively develop and expand. The Company has achieved a new milestone by surpasing $100 million of proved PV-10 value, and EnerJex's Board of Directors continues to focus on strategically unlocking value and accelerating growth in an accretive manner for shareholders."
About EnerJex Resources, Inc.
EnerJex Resources, Inc. is an independent exploration and production company focused on the acquisition and development of oil and natural gas properties located in the mid-continent region of the United States. The Company owns oil and gas leases covering approximately 100,000 acres in multiple prolific hydrocarbon basins located in four states including Colorado, Kansas, Nebraska, and Texas.
EnerJex's operations are focused in five distinct projects where the company produces oil and natural gas from shallow reservoirs that are characterized by long lived reserves with low production decline rates. Within these projects, the Company has identified more than 500 low-risk drilling locations. Through its large acreage footprint in the Denver-Julesburg ("DJ") Basin, EnerJex also has significant exposure to emerging oil resource plays that are being pursued by numerous competitors on trend with the Company's properties. EnerJex's headquarters are located in San Antonio, Texas, and additional information is available on its website at www.enerjex.com.
Information on Reserves and PV-10 Value
EnerJex's reserve reports for the years ended December 31, 2013 and 2012 were prepared by MHA Petroleum Consultants, Inc. Future cash inflows relating to the Company's reserves were computed for the years ended December 31, 2013 and 2012 using the twelve month average price for oil and natural gas (the "benchmark prices") adjusted for sales contracts and price differentials. Benchmark prices are held constant in accordance with SEC guidelines for the life of the wells. PV-10 value is a non-GAAP measure and is different than the Standardized Measure of Discounted Future Net Cash Flows ("Standardized Measure"), which measure will be presented in EnerJex's upcoming Form 10-K, in that PV-10 value is a pre-tax number, while the Standardized Measure includes the effect of estimated future income taxes
EnerJex Resources, Inc.
Robert Watson, Jr.
Phone: (210) 451-5545
SOURCE: EnerJex Resources, Inc.