Robert Watson Jr., Chief Executive Officer of EnerJex Resources, Inc. (ENRJ), talked to The Wall Street Transcript about his company.Click here to read the complete interview.
TWST: Please begin with a brief introduction to EnerJex, including a few highlights from its history and an overview of its primary operations.
Mr. Watson: EnerJex (ENRJ) is a domestic onshore oil company with producing assets located in eastern Kansas and south Texas. My partners and I became substantial shareholders at the beginning of 2011 through a comprehensive transformation of the company that I will walk you through. We completely reconstituted the management team and board of directors, and we completed a series of financial transactions that addressed some balance sheet issues the company was having. For example, we raised $5 million of common equity and we converted $2.7 million of debt into common equity at $0.80 per share. We also made some acquisitions through the issuance of equity. Following these transactions, we are intensely focused on creating per share value by developing our extensive asset base with minimal dilution to shareholders.
In early 2011, we launched an aggressive drilling campaign to develop some of our low-risk oil properties and increase our revenue and cash flow. In addition, we highgraded our asset portfolio by selling $5.5 million of noncore assets.
A year ago, I would characterize EnerJex as a turnaround situation. And today, after a tremendous amount of work, I think we’ve made the turn, and we’re positioned for another year of significant growth in 2012.
As far as EnerJex’s operations, we’ve got two shallow oil projects in eastern Kansas and one shallow oil project in south Texas, all of which are producing and have considerable room for expansion.
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