EnerJex Resources, Inc. has completed the sale of its interests in approximately 2,250 non-producing gross acres comprising the Company's Lonesome Dove Project in Lee County, Texas. These interests consisted of a 50% working interest from the surface through a depth of approximately 4,800 feet, a 10% working interest in all other depths, and a 15% carried working interest in the first of any well to be drilled by its partner to a depth greater than approximately 4,800 feet.
Pursuant to the terms of this transaction, EnerJex received $450,000 in cash and will receive an average overriding royalty interest of approximately 2.4% in the acreage, more than 95% of which expires in 2017 and 2018 unless it is first drilled and held by production. The acreage is prospective for oil production from multiple formations including the Eagle Ford Shale, Buda, Austin Chalk, and Taylor Sand. Industry activity appears to be increasing in this area, and drilling permits were filed during the past two months for four horizontal wells located adjacent to this acreage with total depths ranging from 13,500 to 15,000 feet.
EnerJex's CEO, Robert Watson, Jr., commented, "I am very pleased to announce this transaction, which exposes EnerJex and its shareholders to a significant amount of upside potential if commercial oil production is established on this acreage from any one of multiple potential deep horizontal oil resource plays."
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