Amazingly low interest rate. I think this puppy has a lot of upside for us.
San Antonio, Texas (August 15, 2014) – EnerJex Resources, Inc. (NYSE MKT: ENRJ) (“EnerJex” or the “Company”), an independent exploration and production company focused on the acquisition and development of oil and natural gas properties located in the mid-continent region of the United States, announced today that the borrowing base under its $100 million senior secured revolving line of credit with Texas Capital Bank, N.A. (“TCB”) has been increased from $38 million to $40 million and the maturity of this facility has been extended by three years to October 3, 2018. The current interest rate associated with this facility remains 3.3%.
As of June 30, 2014, the Company had $19 million borrowed under this credit facility, resulting in $21 million of immediately available liquidity which EnerJex is actively deploying across its vast portfolio of drilling and development opportunities in Colorado and Kansas. In addition, management expects the Company’s borrowing base to increase significantly over time as EnerJex increases its oil and natural gas production and associated reserve value.
Management Comments
EnerJex’s CEO, Robert Watson, Jr., commented, “I am pleased to announce the expansion and extension of EnerJex’s credit facility with TCB, which has been an outstanding long-term partner for the Company. This facility provides a very attractive source of capital which EnerJex can utilize to develop its existing assets and acquire new assets in an accretive manner for shareholders.”
About EnerJex Resources, Inc.
EnerJex Resources, Inc. is an independent exploration and production company focused on the acquisition and development of oil and natural gas properties located in the mid-continent region of the United States. The Company owns oil and gas leases covering nearly 100,000 acres in multiple prolific hydrocarbon basins located in four states including Colorado, Kansas, Nebraska, and Texas.
EnerJex’s operations are focused in five distinct projects where the company produces oil and natural gas from reservoirs that are characterized by long lived reserves with low production decline rates. Within these projects, the Company has identified more than 500 low-risk drilling locations. Through its large acreage footprint in the Denver-Julesburg (“DJ”) Basin, EnerJex also has significant exposure to emerging oil resource plays that are being pursued by competitors on trend with the Company’s properties. EnerJex’s headquarters are located in San Antonio, Texas, and additional information is available on its website at www.enerjex.com.