Jayhawk Energy, Inc., (OTCBB: JYHW) is an independent, managed risk, oil and gas exploration, development and production company headquartered in Broomfield, Colorado with field offices in Kansas and North Dakota. The Company’s current focus is on the exploration, drilling, and development of approximately 53,000 acres known as the Uniontown and Girard projects located in the Cherokee Basin, Bourbon and Crawford Counties, Kansas.  Adjacent to these projects is the Company’s wholly owned 16 mile pipeline, which is tied to sales.  Additionally, Jayhawk is currently utilizing a 15,500 acre light crude oil producing property in the Williston Basin, Candak County, North Dakota.

MARKET DATA

Ticker: JYHW

Recent Price: $1.97

Market Cap: $83,444,948

Fiscal Year Ends: 9-June

Average Volume: 287,050

52 Week High/Low: $0.86 - $2.75

Shares Out: 42,573,953

Float: 34,059,162

As the price of oil continues to rise the United States is reactivating its largest Super Fields in Kansas with known reserves estimated at 2.8 Trillion cubic feet according to the U.S Department of Energy.  These oil fields collectively referred to as the Williston Basin represent the most prolific oil & gas area plays in all of North America. Jayhawk Energy recently made the crucial transition from explorer to U.S Petroleum Producer with initial production numbers pointing to JYHW becoming a major oil-juggernaut.  Jayhawk’s recent acquisition of the 15,500 acre Candak Property beating out majors Marathon Oil and ConocoPhillips with combined $175 Billion market caps represents a major step for the company already producing $259,000 in revenues in the first three months of production.

CURRENT PROJECTS:

Uniontown - Bourbon County, Kansas
(Cherokee Basin)

OVERVIEW

• Bourbon County, Kansas
• Part of Cherokee Basin
• Large amount of historical data available
• DOE data: Cherokee Basin has 2.8 Tcf of potential recoverable CBM
• Current position - 35,000 Gross acres - 163 Bcf gross gas in place
• Large amount of infrastructure nearby
• Ability to grow land position

Cherokee Basin Strategic Column
and Intervals of interest - Uniontown project:
Three principal “blanket” coal seams

• Mulky - summit trend
• Weir - Pittsburgh trend
• Riverton trend

Characteristics

• Depths ranging from 75ft - 500ft
• 2-4 ft thick
• Gas saturation ranging from 150-380 scf/ton
• Excellent permeability

Other minor coal seams

• Beviar, Tebo, Dry wood and Rowe - 1-3ft thick

A single well can be completed in 6-7 zones
Cherokee basin geology understood

• Extensively drilled since early 1900s
• Large amount of historical geological data available
• Over 100,000 wellbore penetrations in basin

Cherokee Basin Photos
Girard KS, Field Office

Drilling, and hitting gas, in Kansas:

Girard Kansas Project

Adjacent to the Uniontown project, the Company recently acquired land in Crawford County Kansas, known as the Girard Project.  With the acquisition of the Girard project, the Company now holds over 55,000 acres in the Bourbon and Crawford counties of Kansas. Included in the acreage is a sixteen (16) mile gas pipeline the Company acquired from Galaxy Energy, Inc. along with 34 wells, 7 of which are tied-in to the pipeline.  The Company’s entire position and drill targets in the 55,000 acres can be tied into our 100% owned 16 mile pipeline. This pipeline is tied into a 2 million cubic ft sales pipeline and allows for substantial growth.

Our first step will be to dewater the seven (7) tied-in wells, and then connect the additional 27 wells on our way to maximizing production in this area.  These assets combined with our Uniontown project provide over 4,100 drilling locations with a net interest of 100% to JayHawk Energy, significantly expanding our South Eastern sector asset base as a 'core area' with the acreage positions adjacent to each other.

Candak Property

Recently acquired from JED OIL (USA) INC., located in the North Dakota’s Williston Basin, the Candak Property provides Jayhawk with a stable production of light oil.  The 5 completed wells produce 65bbls of oil daily. 

Along with the acquisition of the 5 existing wells, Jayhawk acquired a 15,500-acre land position. This acreage is located in a highly active area by other operators in the Williston Basin play in North Dakota and across the border into Canada. Canada’s stable production of light oil from its low well count and significant undeveloped land base places Jayhawk in a high potential growth position to develop the light oil play.

MANAGEMENT:

Lindsay Gorrill - President & CEO
Mr. Lindsay Gorrill is a C.A. and has university degrees in Finance and Marketing. Mr. Gorrill, the former President and CEO of WGI Heavy Minerals, has a background in acquisitions, company building, financial markets and world exposure. He is also the former president and CEO of Berkley resources, a light crude, gas and sour gas company based in Calgary, Alberta. Mr. Gorrill has 17 years experience in the resource sector and 15 years experience in successful international company building.

Darren Schoenroth - V.P. of Operations
Mr. Schoenroth has over 20 years of experience in the oil and gas industry. He brings to JayHawk a proven successful track record of identifying, bringing on and successfully increasing oil & gas production. His expertise is in optimization; stimulations, production enhancement, secondary recoveries, horizontal and slant well bore experience.

Dennis J. Lisack - Manager Land Management & Community relations
Mr. Lisack holds a Bachelor of Science degree from Loyola University of Chicago. He most recently worked as a General Partner with Missouri Gas Partners in Kansas. He brings to Jayhawk his broad experience in the energy sector including the process, quality, and environmental fields. He has a successful track record in project management and land development.

Joseph Young - Chief Financial Officer
Joseph Young was formerly Controller for Fellows Energy Ltd. where he served as in-house accountant and performed financial reporting and compliance functions. Mr. Young previously served as an auditor at Pricewaterhouse Coopers in San Jose, California after earning his BA in Accounting at the University of Utah. Mr. Young is also President and Managing Member of Resource Consulting, LLC, a firm that provides accounting and investor relations services.

BOARD OF DIRECTORS:

Donald Siemens - Audit Committee Chairman
Mr. Siemens' experience and expertise encompasses 27 years as a chartered accountant, including eight years in public practice as a Partner with several major accounting firms, eight years in senior executive positions in industry, and 20 years as a self-employed financial services executive specializing in corporate finance, as well as, mergers and acquisitions. Mr. Siemens also acted as Partner-in-Charge of Financial Advisory Services in the mid '80s for Thorne Ernst & Whinney (now KPMG).

Matt Wayrynen - Director
Mr. Wayrynen has served in a variety of positions within the oil and gas and mining sectors and has served as a Director for several companies. Mr. Wayrynen currently acts as Vice President of Operations and a Director for Bralorne Gold Mines, Ltd as well as Director for Quinto Mining Corporation. In addition to this, Mr. Wayrynen serves as CEO, Executive Chairman and Director of Berkley Resources Inc. and Vice President of Coral Gold Resources Ltd. Prior to this, Mr. Wayrynen acted as President and a Director for Berkley Resources Inc. He was also an investment advisor with Golden Capital Securities Ltd.

Jeff Bright - Director
Mr. Bright is an attorney by trade, who acts on a broad range of business transactions, both in Canada and internationally, predominantly in the energy and related industries. He has guided his clients through startup and financings to public offerings and strategic mergers. Currently, Mr. Bright serves as an associate in Gowlings' Calgary office, practicing in the area of corporate commercial law. He is an active member of the Canadian Petroleum Law Foundation's organizing committee for its annual Jasper Seminar and a number of committees with the American Bar Association and the Association of International Petroleum Negotiators.

RECENT NEWS:

July 11, 2008

Jayhawk Energy Updates Drilling Activity On Cherokee Basin Project, Kansas

July 2, 2008
Jayhawk Energy Inc Adds Don Siemens As Audit Committee Chairman