EnerJex Resources has completed drilling 69 new wells in its Rantoul project with a 100% success rate.

These wells were funded by the general partnership that was recently formed to develop this project, and an additional 81 wells are expected to be funded in tranches over the next 12 months.

During the past four months, EnerJex has drilled 42 new production wells and 27 new water injection wells. Of the new production wells, 24 have begun producing oil and the remaining 18 are expected to be online by the end of this month. Six of the new injection wells are online and the remaining 21 are expected to begin injecting water shortly.

Production from the Rantoul Project has averaged approximately 125 barrels of oil per day (BOPD) during the past 30 days, and it is expected to exceed 150 BOPD once the remaining wells are brought online. EnerJex currently owns 88.25% of the general partnership that was formed to develop the Rantoul Project, and it will own 75% if the remaining $2.65 million is funded by its partners as scheduled.

EnerJex's CEO, Robert Watson, Jr commented, "These assets are characterized by low decline rates and a long production life, providing an excellent platform to support the Company's future growth. EnerJex is contemplating the formation of additional general partnerships to develop its extensive inventory of low risk development drilling locations. I believe the partnership vehicle is a win-win for both the company and the investors. It is designed to provide meaningful tax benefits and attractive returns to investors, while enabling the Company to expedite the development of its assets in a low risk and accretive manner for stockholders."

Tags: EnerJex Resources