September 25, 2008

JayHawk Energy Reports 58% Increase in Daily Production at Cherokee Basin

JayHawk Energy has reported a 58% daily production increase on its southeast Kansas Cherokee Basin Project in the US since tying in the first eight wells to its wholly owned gathering system and doubling the size of the compression infrastructure used to deliver and facilitate gas through the pipeline.

The eight tied-in coal-bed methane gas wells help comprise JayHawk's Phase 1 drilling program, which includes 20 of a targeted 100-well project located in southeast Kansas, where JayHawk has over 95% ownership of approximately 50,000 gross acres.

The company anticipates increased daily production from current rates of 170 million cubic feet per day to a higher production base via additional tie-ins, stimulations and its dewatering program. The first eight wells continue to undergo dewatering, and JayHawk expects full production from these wells within 60 days.

Lindsay Gorrill, president and CEO of JayHawk Energy, said: "At this juncture, we are very pleased with our daily production rates from our new wells and expect production to increase as these wells go through the dewatering process and further stimulation."