When it comes to the world’s oil supply, there is no free market. OPEC sets the price, and they have for decades which makes cheap oil stocks like EnerJex Resources, Inc. (OTC: ENRJ) that much greater of a find. With oil producing assets in the Southern part of the U.S., a share repurchase program in place until the end of 2013 and a new CFO as of August, 2012, ENRJ stock looks to be a steal of a deal for those willing and able to go long and strong on $61 million worth of proven oil reserves.
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ENRJ Stock Quote
Market Cap: 45.34M
Last: 0.65 ▲ +0.01 (+1.56%)
Volume: 1,000
Dollar Volume: $650
Open: 0.65
High: 0.65
Low: 0.65
Trades: 1
Authorized: 100,000,000
Issued and Outstanding: 67,836,529
Officers and Directors as a Group: 45,180,671
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Focused on two projects in Southern Kansas and Eastern Texas, Enejex Resources made significant strides over the course of 2012 which are sure to impact the bottom line and help push ENRJ stock price over $1 in the coming months. During 2011, the oil drillers executed an option to purchase additional oil producing assets in their Mississippian Project located in Southeast Kansas. Enejex acquired a 90% working interest in 720 acres and earned the option to acquire a 90% working interest in 1,280 additional adjacent acres upon fulfilling certain drilling milestones.
During the course of 2011, the Company:
• drilled and completed 3 new oil wells in their El Toro Project located in South Texas with a 100% success rate.
• drilled and completed 9 new oil wells and 4 new water injection wells in their Mississippian Project with a 100% success rate.
• drilled and completed 47 new oil wells and 28 new water injection wells in their Rantoul Project located in Eastern Kansas with a 100% success rate.
2012 was even better! During the course of last year, EnerJex Resources:
• drilled 91 oil wells and 86 secondary recovery water injection wells on their Cherokee Project acreage, including 58 oil wells and 67 secondary recovery water injection wells on the Rantoul Partner leases.
• drilled 35 oil wells, 14 secondary recovery water injection wells, and one dry hole in their Mississippian project.
The result were significant to say the least. Total net proved and probable oil reserves as of December 31, 2011 were 2.71 million and 1.31 million barrels of oil on the Company’s Eastern Kansas and South Texas projects, respectively. Total net proved oil reserves as of December 31, 2012 were 2.9 million barrels of oil collectively since, for the year ended December 31, 2012, EnerJex reported Oil revenues of $8,496,519 versus $6,285,411 for the same period the year prior.
EnerJex’s results of operations for producing activities during the 12 months ended was $2,547,616 versus $1,132,871 for the same period in 2011. An even more significant determination as to where ENRJ stock may be headed can be seen by their decrease in share issued and outstanding from their 10-K filing in 2011 versus that which was filed today for the year ended December 31, 2012: 69,645,279 on April 10, 2012 versus 67,836,529 on April 10, 2013.
On November 2, 2012, EnerJex’s BoD approved and authorized the repurchase of up to $2.0 million of ENRJ shares which is scheduled to remain valid through December 31, 2013. The plan was put into place shortly after Douglas M. Wright, former Corporate Controller and Chief Accounting Officer of Nations Petroleum Company, Ltd. from 2006 until his appointment by EnerJex, as the Company’s Chief Financial Officer. Prior to his employment with Nations, in 2005 to 2006 he was a Manager of Financial Reporting for Noble Energy, Inc. (NYSE: NBL).
With successful drilling a given for these oil producers and a public float of roughly 20 million, seeing ENRJ surpass $1 at some point prior to the middle of summer, 2013 appears to be a no brainer and worth every penny of attention for longs.
About ENRJ Stock
EnerJex Resources, Inc., through their wholly-owned operating subsidiaries, EnerJex Kansas, Inc., DD Energy, Inc., Black Sable Energy, LLC and Working Interest, LLC, is a domestic onshore oil company with producing assets located in Eastern Kansas and South Texas.
Click here to view the SEC filings for ENRJ.
Click here to view the website for Enerjex Resources.
Last 5 Trading Sessions:
| Date | Last | Change | % Change | Volume |
| 04/10/13 | 0.6500 | +0.0100 | +1.56% | 1,000 |
| 04/09/13 | 0.6400 | -0.0300 | -4.48% | 3,000 |
| 04/05/13 | 0.6700 | -0.0200 | -2.90% | 5,900 |
| 04/04/13 | 0.6900 | +0.0300 | +4.55% | 27,600 |
| 04/03/13 | 0.6600 | -0.0100 | -1.49% | 3,500 |
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Bottom Line:
If your’e a long investor and looking for cheap penny stocks focused on oil that are producing already, ENRJ is one for you to look into. Some Wall Street analysts have already issued a 12-month price target as high as $1.70 for ENRJ stock which could add up to gains of over 160% if they reach that high. At $1, the gains are still significant enough, especially for those looking to avoid pump and dumps.
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