EnerJex Resources announces acceleration of Cherokee oil project development
Friday, Nov 30, 2012
SAN ANTONIO, Nov. 29, 2012 /PRNewswire/ -- EnerJex Resources, Inc. (OTCMarkets: ENRJ) ("EnerJex" or the "Company"), a domestic onshore oil company, announced today that Rantoul Partners has received its final capital contribution of $650,000 ahead of schedule. The Company will use these proceeds to drill and complete at least 20 new wells on the partnership's acreage during the current quarter. In addition, EnerJex continues to actively exploit its Cherokee Project expansion acreage which surrounds the partnership's assets. The Company expects to fund the future development of this project through cash flow generated from operations and its senior credit facility with Texas Capital Bank.
Rantoul Partners is a general partnership that was created in December 2011 to fund the development of a portion of EnerJex's Cherokee Project in an accretive manner that results in no share dilution or capital requirements for the Company. Rantoul Partners has received $5.0 million of total funding from outside investors in exchange for a 25% interest, which reduced EnerJex's ownership in the partnership from 100% to 75%.
EnerJex's CEO, Robert Watson, Jr., commented, "I am pleased with the partnership's results over the past 12 months, and I believe it has proven to be a win-win for both the Company and its investor partners. We have identified and plan to aggressively develop hundreds of low-risk drilling locations on the partnership's existing leases and in the surrounding expansion area where we have now leased approximately 10,000 acres."
About EnerJex Resources, Inc.
EnerJex is a domestic onshore oil company with assets located in Eastern Kansas and South Texas. The Company's primary business is to acquire, develop, explore and produce oil properties onshore in the United States. Additional information is available on the Company's web site at www.enerjex.com.
SOURCE EnerJex Resources, Inc.
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