POST FALLS, Idaho-–—April 30, 2010 - JayHawk Energy, Inc. (OTCBB:
JYHW) wishes to inform its shareholders that both wells drilled recently
on its Crosby North Dakota oil property have been equipped and are
now on production. The initial well drilled on the Knudson location
is currently making oil at 3-8 BOPD (barrels of oil per day) with
some water. “We are encouraged by the oil production, but disappointed
in the lower than expected fluid rate from the Knudson well and are
looking at several remedial options to increase that rate and the
associated oil production to bring this well in line with the test
rates achieved after the well completion,” said JayHawk President,
Marshall Diamond-Goldberg.
The second well, the Jenks #1 is making a significant volume of
water. The Jenks location is expected to start making oil as the
fluid level in the well bore continues to be drawn down by pumping
at higher rates. Testing indicated high overall fluid volumes, likely
the result of encountering natural fractures in the reservoir during
drilling. “With the higher fluid volumes, we expected to encounter
a higher percentage of water. We believe that the well should begin
making oil in the near term after additional pumping,” said
Mr. Diamond-Goldberg.
Despite the close proximity of the two wells (500 feet apart) and
our other producing wells, their fluid rates have been very different.
The Jenks is capable of producing over 200 BFPD (barrels of fluid
per day) while the Knudson is producing less than 20 BFPD. “These
differences in the two wells demonstrate the very changeable nature
of the reservoir from well to well; however, we feel confident that
both wells will contribute to JayHawk’s production base for
many years to come,” said Mr. Diamond-Goldberg.
The company will continue to monitor the wells, determine remedial
procedures and begin to identify the next several drilling locations
on its developing oil asset.
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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.
