POST FALLS, Idaho. – November 14, 2011 - JayHawk Energy, Inc. (OTC Markets: JYHW)announces today that it has brought a fourth well online for production in Divide County, North Dakota ending a string of nine months with less than a majority of wells producing. Oil production in North Dakota has been hampered severely by flooding and subsequent poor road conditions since February 2011.
The Company's “Kearney” well remains non-producing as a result of continued high water and inability to access storage tanks. JayHawk anticipates resuming production on the Kearney well within the next 45 days.
JayHawk's focus, over the course of this current fiscal year, is to enhance the production rate of its current wells in North Dakota’s Williston Basin and also increase its acreage with additional proved producing properties or properties which will allow for additional production and development. The Company's focus remains on its North Dakota properties as management has surmised its best opportunity for increased production remains in the Bakken/Three Forks formations.
Lindsay Gorrill, President of JayHawk Energy, stated, "We are pleased to return production to historically normal volumes at a majority of our Divide County wells. While the past several months have been difficult, we have weathered the storm and look forward to returning to normal operations. The Company will focus on improving efficiency and optimize production volume, as well as looking for additional growth opportunities in the Williston Basin."
Investor Relations Contact
Kelly Stopher
JayHawk Energy, Inc.
(208) 667-1328
info@jayhawkenergy.com
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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.
