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Tue, July 27, 2010Mon, July 26, 2010Sun, July 25, 2010Fri, July 23, 2010Thu, July 22, 2010Wed, July 21, 2010Tue, July 20, 2010Mon, July 19, 2010Fri, July 16, 2010Thu, July 15, 2010Wed, July 14, 2010Tue, July 13, 2010Mon, July 12, 2010Fri, July 9, 2010Thu, July 8, 2010Wed, July 7, 2010Tue, July 6, 2010Mon, July 5, 2010Fri, July 2, 2010Thu, July 1, 2010Wed, June 30, 2010JayHawk Updates Shareholders on Operations
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Published in Stocks and Investing on Friday, July 16th 2010 at 6:10 GMT by Market WirePOST FALLS, Idaho--([ BUSINESS WIRE ])--JayHawk Energy, Inc. (OTCBB: JYHW) would like to provide an update on its recent drilling activities on its Crosby, North Dakota, acreage as well as developments on its Kansas shallow gas holdings.
Both wells drilled in the Crosby, North Dakota, Madison formation oil play of the Williston Basin were cased and placed on production in April. While the Jenks #1 well initially produced only water, a follow-up workover was successful in shutting off the water zone and returned the well to oil production. Both wells are producing at lower than expected fluid volumes, which has translated into lower oil production than anticipated. The Company is considering fracturing one or both wells in order to stimulate increased flow rates.
JayHawk is currently evaluating follow-up locations for future development drilling on its nearly 15,000 acres in the Crosby area. In order to increase efficiencies in operations, the Company is planning to consolidate the seven single well batteries currently utilized for processing into a single production battery that will service multiple wells. This change will reduce the costs of operating multiple wells. Once the consolidation is completed, the Company plans to sell-off equipment identified as excess and no longer needed for production.
In light of the recent afirming upa of natural gas prices, the Company is re-examining the potential for increased production from its shallow gas acreage located in Kansas. Our operating partner has begun the field work necessary to enhance productivity of the existing wells, and JayHawk has performed the necessary upgrades to the gas gathering system to alleviate bottlenecking on its pipeline. These changes should stabilize production rates going forward and may allow the Company to increase production through improving existing well flow rates and the selective drilling of new wells. Any future production enhancements will likely be funded through operating revenues and/or the exercise, by our operating partner, of their option to acquire an additional forty-two and one-half percent (42.5%) interest in our Kansas holdings. That option expires in late September of this year.
The Company is also looking at the potential acquisition of oil production properties in Kansas. If the Company is successful in increasing gas production from its Kansas holdings, the combination of both oil and gas production will create a secondary core production area for the Company.
In summary, the Company is looking toward enhancing production from its existing wells in North Dakota as well as achieving greater efficiencies of operations in this project. JayHawk is also re-examining its gas portfolio in Kansas and looking to further exploit its gas resources, jointly with its partner, and augmenting that production with an acquisition of a producing oil property in Kansas as well.
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 ].
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 and potential, that the SECa™s guidelines strictly prohibit us from including in filings with the SEC. U.S. Examples of such disclosures would be statements regarding aprobable,a apossible,a or arecoverablea reserves among others.
Management hopes these transactions will bring additional value to the shareholders of JayHawk Energy. There is no guarantee that the projects that JayHawk has recently acquired will increase the value of its shares of common stock, or that JayHawk will acquire rights to explore and operate any other such projects, or that in the event that it acquires rights to explore and operate other such projects, that these actions will be successful or increase the value of JayHawka™s common stock.
This press release may contain forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and is subject to the safe harbor created by those sections. There are many factors that could cause our expectations and beliefs about our plans to acquire additional exploration or production properties, our plans to drill or our drilling results to fail to materialize: competition for new acquisitions, availability of capital, unfavorable geologic conditions, the complexity of coal bed methane exploration and production, and prevailing prices for natural gas and general regional economic conditions. JayHawk assumes no obligation to update the information contained in this press release.
