SOURCE: JayHawk Energy, Inc.

March 15, 2011 13:09 ET

JayHawk Evaluates Bakken Acreage -- Looks for Additional Land

POST FALLS, ID--(Marketwire - March 15, 2011) - JayHawk Energy, Inc. (OTCBB: JYHW) has begun its evaluation for the drilling of its recently acquired Bakken/Three Forks mineral acreage which was acquired by the Company in January. The evaluation has centered around the potential for the Bakken formation as well as the underlying Three Forks shale, which is thought to be a separate reservoir zone and has been produced in the nearby Ambrose field by Baytex and SM Energy. The Three Forks appears to be of appropriate reservoir quality to produce oil as compared to the nearby Ambrose field wells.

JayHawk has procured 1,066.5 gross acres in northwest Divide County (135.056 acres net) with Three Forks and Bakken development potential. Spacing of wells is currently 1,280 acres, therefore JayHawk will require pooling of its acreage with other interest holders in order to drill a well. The Company is currently identifying the other interest holders in order to proceed with a pooling and formulate plans for the possible drilling of a well in the fourth quarter of calendar 2011. The Company is also continuing to source additional acreage to increase its Bakken/Three Forks holdings and looks to accelerate its efforts through purchase and joint venture during the course of the year.

About JayHawk Energy
JayHawk Energy, Inc. is a managed risk, oil and gas exploration/exploitation, development and production company with activities focused on two major projects in the Cherokee Basin, Kansas and the Williston Basin, North Dakota. For more information please visit

Cautionary Note to U.S. Investors -- The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this press release, such as probable, possible and potential, that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Examples of such disclosures would be statements regarding "probable," "possible," or "recoverable" reserves among others.

Management hopes these transactions will bring additional value to the shareholders of JayHawk Energy. There is no guarantee that the projects that JayHawk has recently acquired will increase the value of its shares of common stock, or that JayHawk will acquire rights to explore and operate any other such projects, or that in the event that it acquires rights to explore and operate other such projects, that these actions will be successful or increase the value of JayHawk's common stock.

This press release may contain forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbor created by those sections. There are many factors that could cause our expectations and beliefs about our plans to acquire additional exploration or production properties, our plans to drill or our drilling results to fail to materialize: competition for new acquisitions, availability of capital, unfavorable geologic conditions, the complexity of coal bed methane exploration and production, and prevailing prices for natural gas and general regional economic conditions. JayHawk assumes no obligation to update the information contained in this press release.

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