Jayhawk Energy CEO Kelly Stopher said, "On June 9th, Jayhawk Energy announced a successful capital raise of $600,000 specifically earmarked for reclamation of non-producing wells and enhancement of its existing producing assets. Through the successful efforts of our valued contractors and field personnel, the Company has resumed production at all five of its existing wells. Due to capital constraints on repair, inclimate weather and other negative conditions, the wells have not operated concurrently since September of 2012. We are pleased with the early results and expect improved cash flow coming from the North Dakota operations in the future."
Stopher stated reclamation of the abandoned Jenks and Knudsen well sites in North Dakota is nearly finished after being hampered by heavy rain. The Company will proceed with the permitting process on a proposed salt water disposal well shortly thereafter. The proposed water disposal well will allow the producing wells to run more consistently, eliminate water-hauling expense and improve operating margins.
"Over the course of the next few weeks, the Company will continue to optimize production through acid treatment on the remaining five wells. We expect sustained production gains shortly thereafter," Stopher said. "Jayhawk will also be looking to expand production through joint venture agreements and acquisition. The farm-out agreement signed with Vast Energy on our Kansas assets in May is starting to bear fruit and we expect operational results to continue to improve in the next fiscal year."
About Jayhawk Energy, Inc.
JayHawk Energy, Inc. is a managed risk, oil and gas exploration/exploitation, development and production company with activities focused on two major projects in the Cherokee Basin, Kansas and the Williston Basin, North Dakota. For more information please visit www.jayhawkenergy.com.
This press release contains forward-looking statements concerning future events and the Company's growth and business strategy. Words such as "expects," "will," "intends," "plans," "believes," "anticipates," "hopes," "estimates," and variations on such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Forward looking statements in this press release include statements about our drilling development program. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the timing and results of our 2013 drilling and development plan. Additional factors include increased expenses or unanticipated difficulties in drilling wells, actual production being less than our development tests, changes in the Company's business; competitive factors in the market(s) in which the Company operates; risks associated with oil and gas operations in the United States; and other factors listed from time to time in the Company's filings with the Securities and Exchange Commission including the Company's Annual Report on Form 10-K for the year ended December 31, 2012. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.
Cautionary Note to U.S. Investors - The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this press release, such as "probable," "possible," "recoverable" or "potential" reserves among others, that the SEC's guidelines strictly prohibit us from including in filings with the SEC. Investors are urged to consider closely the disclosure in our filings with the SEC.
Jayhawk Energy, Inc.
SOURCE: Jayhawk Energy, Inc.