EnerJex Resources Reports Operating Income for the First Quarter and Increased Production

Thursday, August 28th 2008

EnerJex Resources, Inc. announce financial results from its first quarter ended June 30, fiscal 2009. The Company, which first began acquiring oil leases in April 2007, has delivered its first positive income from operations of $24,710. For the three months ended June 30, 2008, oil and natural gas revenues were $1.69 million.

Oil sales volumes on a net revenue basis were 17,875 barrels compared to 2,304 barrels for the same period in 2007. The average commodity price, adjusted for hedges, received by EnerJex in the quarter, net of transportation costs, was $101.51 per barrel of oil as compared to $58.77 for the quarter ended June 30, 2007. The net loss for the quarter was $631,800, which included non-cash charges for stock-based compensation, depletion, accretion and certain loan costs totaling $831,286. Cash flow provided by operations was also positive, totaling $351,045.

EnerJex’s CFO, Dede Jones commented, “EnerJex has gone from a start-up to a company with positive operating income and cash flows from operations in a very short time frame. Staying focused on our growth strategy and ensuring cautious implementation is producing results.”

OPERATIONAL UPDATE BY PROJECT:

DD Energy

Since May of 2008, EnerJex has drilled 55 new wells (26 producer and 29 injector wells) on the Voigts lease, which consists of 200 gross acres in Johnson County, Kansas. The Company has completed 18 of these producer wells and is in the process of completing the remaining 37 wells. On August 26, 2008, the Voigts lease produced approximately 53 gross barrels of oil, up from 12 barrels of oil per day (BOPD) when it was acquired in September 2007.

Gross production of DD Energy Project at purchase approximated 45 BOPD. On August 26, 2008, total gross production for DD Energy was approximately 92 barrels.

Black Oaks

Since its acquisition in April 2007, our operating partner, Haas Petroleum, LLC, has drilled a total of 44 wells on Black Oaks. Thirteen of the wells are enhanced oil recovery (EOR) injector wells that are now operational and 29 are producing wells, of which all but one are completed.

Black Oaks encompasses approximately 2,400 gross acres in Woodson and Greenwood Counties in Kansas. For the quarter, gross average production at Black Oaks was approximately 100 BOPD. Production was down for the quarter, primarily due to eight of the better-producing wells being converted to injector wells to optimize our long-term waterflood distribution pattern. In addition, electrical storms shut down a number of wells for a number of days in the quarter. On August 26, 2008, gross production was approximately 106 barrels.

Thoren

We have drilled and completed a total of 31 wells on the Thoren Project since it was acquired in April 2007. Twenty are producing wells and 11 are EOR injector wells. We have acquired an additional 165 acres of producing leases with 2.5 BOPD in Douglas County, Kansas, and expect to begin developing them shortly. The Thoren Project encompasses 747 gross acres. Gross production on August 26, 2008, was approximately 48 barrels.

Gas City

We have drilled a total of 22 wells since signing a development agreement for Gas City with Euramerica Energy. We have completed six of the 22 wells, four for gas testing purposes and two for conventional oil and gas. Gas City encompasses approximately 6,600 gross acres, primarily in Allen County, Kansas. On August 26, 2008, gross production on Gas City’s two oil wells was approximately 17 barrels and seven gas wells was approximately 100,000 cubic feet.

Tri-County

The Tri-County Project consists of approximately 1,300 gross acres of leaseholds in Miami, Johnson and Franklin Counties in Kansas, with over 170 identified drilling locations. We have drilled and completed four producer wells on the Tri-County leases to-date. For the month of July, Tri-County had gross production of approximately 46 BOPD. That volume had increased to approximately 62 barrels on August 26, 2008.

EnerJex’s CEO, Steve Cochennet, commented, “We are extremely pleased with the increase in production this quarter and the progress we have made since May in developing the Voigts lease. Our March 31, 2008, Reserve Report included seven proved undeveloped (PUD) locations on the Voigts lease. As highlighted above, since our last Reserve Report, we have drilled and are in the process of completing 55 new wells with zero dry holes within that project. Based on these results, we plan to completely drill out the additional 15 locations on this lease before moving on to any of our other 30-plus leases, which cover over 13,500 gross acres. We anticipate the total capital cost to fully develop the Voigts lease will approximate $2.0 million. We also plan to continue to implement our strategy of prudent acquisitions and development as capital becomes available.”

EnerJex is an oil and natural gas acquisition, exploration and development company. EnerJex’s principal strategy is to focus on the acquisition of oil and natural gas mineral leases that have existing production and cash flow. Once such leases are acquired, EnerJex implements an accelerated development program utilizing capital resources, a regional operating focus, an experienced management and technical team, and enhanced recovery technologies to attempt to increase production and increase returns for its stockholders. EnerJex’s oil and natural gas acquisition and development activities are currently focused in Eastern Kansas.

More information on EnerJex and its operations can be found on its website: www.EnerJexResources.com.