EnerJex Resources has expanded its Rantoul Project acreage by 6,700 acres in Texas, US.
The company’s working interest in the majority of this new acreage, which will now be known as the Cherokee project, ranges from 55% to 80%.
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This represents a 600% rise to 7,800 acres from its 1,100 acres in 2011
Production has reached approximately 250 barrels of oil per day, which is a 150% increase since the beginning of 2012 and a 750% increase since 2011.
The company also said that over 26 new oil wells and 22 new secondary recovery water injection wells have been drilled in recent weeks in various stages of completion.
EnerJex CEO Robert Watson, Jr said with the expansion of the Cherokee project, the company has identified a sweet spot with particularly favourable attributes which are spread across the acreage.
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By GlobalData"This provides an ideal setting for shallow oil development by enabling the company to leverage its fixed costs over a confined area that is expected to be densely developed," Watson commented.
"In addition to our Cherokee project, EnerJex remains focused on developing its Mississippian project in the near term, and the company has been working on financing alternatives to aggressively develop this asset in an accretive manner for shareholders."
The project targets oil at a depth of 650ft to 750ft from Middle Pennsylvanian (Desmoinesian) age sandstone and limestone formations.
EnerJex said that the acreage can yield more than 1,000 new drilling locations
US-based EnerJex Resources is a onshore oil company with assets located in eastern Kansas and south Texas.
