POST FALLS, Idaho—April 14, 2010 - JayHawk Energy, Inc. (OTCBB: JYHW) is pleased to report that the two wells recently drilled on the Company’s Crosby, North Dakota property have been completed and are expected to commence production upon the installation of battery and surface facilities which is currently in progress. Both the Knudson#1 and the Jenks#1 were perforated and acidized over two intervals of the reservoir within the Ratcliffe pay zone. Based on the oil rates achieved during testing, JayHawk expects both wells to produce at commercially viable rates in the midrange of the Company’s expected production parameters which are between 30 to 40 barrels of oil per day. The delay in completion of these wells is directly related to the prolific drilling activity taking place in the Williston Basin area where our core properties exist.
“The downhole pressures taken in the two wells were consistent with expectations and we are delighted with the oil test results from both wells. We are anxious to get both wells producing and increasing revenue for the company,” said JayHawk President, Marshall Diamond-Goldberg.
JayHawk expects additional reserves and revenue growth via the execution of its drilling and well development program. JayHawk’s management team will now begin planning its program objectives for an additional 40 locations in its over 15,000 acre leasehold position in the Williston Basin of North Dakota.
The successful completion of the first two development locations solidify the company’s initial plan to move forward on its 40 well development program on the Crosby property. "The commercial viability of these wells is a substantial milestone for our Company," said Lindsay Gorrill, CEO of JayHawk Energy. "The entire JayHawk team is looking forward to utilizing our growing financial strength and expertise to continue developing additional opportunities and increasing shareholder value as we expand our operations."
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Investor Relations Contact
Barry Gross of Gross Capital, Inc.
www.grosscapital.com
E-Mail: jayhawk@grosscapital.com
Telephone: 1-361-949-4999
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About JayHawk Energy
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 SEC’s guidelines strictly prohibit us from including in filings with the SEC. U.S. Examples of such disclosures would be statements regarding “probable,” “possible,” or “recoverable” 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 JayHawk’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.
