EnerJex Resources Inc. (NYSE MKT: ENRJ) has acquired leasehold interests covering 4,040 gross (3,945 net) acres in Weld County, Colorado. These interests were acquired from multiple third parties at undisclosed terms and are located in two distinct areas of the emerging horizontal Niobrara and Codell oil plays as further described below.

Wattenberg Extension Area

In the Wattenberg Extension area, EnerJex has acquired an 85% operated working interest in 640 acres representing the entirety of Section 16 / Township 8 North / Range 61 West. This acreage is held by production and EnerJex is currently in the process of reactivating and working over three existing vertical wells on the property, including two wells that produce oil from the Niobrara and Codell formations and one well that produces oil from the J-Sand formation. During the past week, EnerJex worked over and intitiated oil production from the two Niobrara/Codell wells and they have produced at a combined rate of approximately 60 barrels of oil per day (BOPD) during the first few days of production. Management expects this rate to decline and stabilize at a lower rate of production.

Hereford Area

In the Hereford area, EnerJex has acquired a 100% operated working interest in 3,040 acres. Two-thirds of this position is located in Township 10 North / Ranges 63-65 West and includes three entire 640 acre sections with an average acreage tract size of 450 acres. The remainder of this position is located in Township 9 North / Ranges 63-65 West with an average tract size of 170 acres. All of this acreage is located on State owned mineral and surface lands with a remaining term of more than 4 years.

Management believes this acreage is highly prospective for horizontal development of the Niobrara A, B, and C zones in addition to the Codell formation. This acreage has the potential for at least 16 horizontal Niobrara drilling locations and as many as 32 horizontal Niobrara drilling locations per 640 acre section based on recent down-spacing tests being conducted by nearby operators that have yielded positive initial results. In addition, this acreage has the potential for up to 16 horizontal Codell drilling locations per 640 acre section. Management believes that the Codell and Niobrara formations underlying EnerJex's acreage in this area are thermally mature and have comparable reservoir characteristics to successful nearby horizontal Codell and Niobrara developments.

EnerJex intends to acquire 3D seismic data covering all or a majority of this acreage and plans to develop these assets by drilling horizontal wells with 4,000'-9,000' laterals. All of this acreage is located in rural areas and the Company does not anticipate any drilling setback issues associated with the development of these assets. EnerJex is currently planning its next steps in both areas and may entertain joint ventures or strategic transactions involving these leasehold interests which have an average net revenue interest of approximately 80%.

Operations Update

Adena Field: After achieving strong initial results from reactivating and recompleting J-Sand and D-Sand wells, EnerJex decided to upgrade its infrastructure in order to increase production capacity and decrease operating expenses. The company is currently replacing key portions of the primary production infrastructure and reconfiguring its water injection system to handle additional production volumes as the company continues reactivating and recompleting wells. In addition, EnerJex recently reactivated a new D-Sand oil well in its southern waterflood unit which confirmed an encouraging initial waterflood response based on pressure data and oil production. As a result, the Company is planning to reactivate additional production wells in this waterflood unit in the near term. EnerJex also reactivated an additional J-Sand oil well which achieved results in line with management's expectations. Management continues to be pleased with the results of this project and plans to aggressively exploit this asset for the foreseeable future.

Mississippian Project: EnerJex recently completed drilling 9 new oil wells and 1 new secondary recovery water injection well in its Mississippian Project with a 100% success rate. These wells are currently in the process of being completed and management is pleased with the early results of this development drilling program. The Company plans to continuously drill at least 100 additional wells in this project, including at least 60 production wells and 40 injection wells at a cost of approximately $75,000 per well. Management expects the production wells to achieve initial rates of approximately 5 BOPD.

Niobrara Project: EnerJex is currently waiting on a third party to complete the upgrade of an existing tap which the Company previously acquired that connects to the Trailblazer pipeline. In addition, EnerJex is working with the COGCC to develop a reduced setback exception area which would allow the Company to drill wells in ideal locations based on 3D seismic interpretation. Subject to approval from the COGCC, EnerJex expects to have the tap upgrade completed and all permits finalized for its previously announced 17 well development drilling program by the first quarter of 2015.

Cherokee Project: EnerJex recently completed drilling 5 new oil wells and 7 secondary recovery water injection wells and management is currently evaluating its future plans for this project, which offers a substantial amount of drilling potential.

Enerjex is based in San Antonio.