EnerJex completes $50M credit facility - Kansas City Business Journal:

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million of outstanding 10 percent seniorsecurede debentures, pay $2 million in debt to , repay abouyt $1 million in promissory notes connected to the company'sw purchase of the DD Energy pay fees and expensesa for the new facilityh and expand current development projects, including completion of 31 new oil wellxs drilled since May. The companh said it will use future borrowings mainly for the development and exploration of oil andgas properties, capitall expenditures and general corporate purposes. EnerJe x also said its 1-for-5 reverse stocmk split approved by shareholderes May 27 will be effectivde on or aboutJuly 25.
The split will combinee each five shares of commonj stock and reclassify it into one share ofcommo stock, reducing the number of shares outstanding to abourt 4.4 million from about 22.2 The company said it also has entered into a "costlesas collar" with on 130 barrels of oil a day with a pric floor of $132.50 a barrel and a ceiling pricre of $155.70 a barrel for NYMEX West Texasz Intermediate for 18 months from Oct. 1, through March 31, 2011. The company's production as of May 30 approximatef 270 barrelsa day.
A costlessd collar is created by buying a protectiver put and writingan out-of-the-monegy covered call with a strikre price with the premium received equal to the premiu of the protective put . Costless collars can be createxd to fully protect existing long stocok positions with little or no cost becauses the premium paid for the protective puts is offsetf by the premiums received for writin g thecovered calls, according to the site.
EnerJex is an oil and naturallgas acquisition, exploration and development