EnerJex Resources announced that the borrowing base under its $100 million senior secured revolving line of credit with Texas Capital Bank, (TCB) was increased from $38 million to $40 million, and the maturity of this facility was 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 the facility, resulting in $21 million of immediately available liquidity which EnerJex is actively deploying across its 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.
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.”
EnerJex Resources is an independent exploration and production company focused on the acquisition and development of oil and natural gas properties located in the U.S.