Overland Park firm taps state's oil, gas resources - Kansas City Business Journal:

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Its executives have spent $5 million to acquire minerakl leases, equipment and infrastructure. By year'e end, it will have spent an additional $6 milliojn to drill wells. Its chairman calls the companuya mom-and-pop operation, even though it now pumps out 250 barrelds of oil a day. Oh, and it's baseed in Overland Park. "It's said Steve Cochennet, chairman and president of and aformeer executive. "People don't realiz how much oil is being produceed aroundKansas City." According to Kansas Geological Survey, the stat ranks eighth nationally, producing oil and gas valued at $4.6 billionn in 2006, which includes 35.7 milliojn barrels of oil. EnerJex concentrates on easterb Kansas.
Kansas differs from othetr states, where big companies such as and run the oil businesws from top tobottom -- digging the oil up, operating wells and then sellinbg to consumers. Kansas is a fragmented market, with 23,000 producers, which has led EnerJesx to where itis today. EnerJex, which formed in Decembere 2005, has based its success on the idea that these independenty producers have not fully tappecd available resources forfossil fuel.
In conjunctiob with Haas Petroleum, a longtime operatort in Kansas, workers drill additional wells in rich areaa where as little as 5 percentf to 10 percent of potential oil has been often using specialized technologies previousproducers didn't In return for acquiring the lease, EnerJe pays the landowner 12.5 percent of revenue the well generate. In August 2006, EnerJex went public througgh areverse merger, and its shares now are tradefd over the counter. No official revenue has been butthrough April, Cochennet had raised $11 million with outside Cochennet said the $8 milliohn the company invested through Sept.
30 already has producedx $26 million in oil according to a Securities and ExchangsCommission filing. "It's a classic first-move advantage situation," said Adam Connors, associate directod of , an investment bankingg firm in California that helped EnerJexraisee $9 million. "It's not that they are looking to buy up all the acreags and squeezeeverybody out. What they are trying to do is partne up with lease holders who choose not to spend the Itmaximizes everyone's interests.
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