EnerJex Announces a 75% Borrowing Base Increase to $12MM
EnerJex Resources, a domestic onshore oil company, announced that Texas Capital Bank approved a borrowing base increase from $7 million to $12.15 million under the company’s $50 million senior secured revolving line of credit.
This improvement resulted from a significant increase in the estimated quantity and value of EnerJex’s producing oil reserves. At present, the company has $6.2 million drawn under this credit facility, which currently bears interest at a rate of 3.75% per year.
EnerJex plans to utilize the additional availability under its credit facility to accelerate the development of its Mississippian and Cherokee shallow oil development projects in Kansas. The company is actively drilling new wells in both areas. Additional borrowing base increases are expected in the coming months following the addition of new oil production and the maturation of existing oil wells that recently began producing.
“I am pleased to announce a significant increase in the Company’s borrowing base at attractive terms,