EnerJex Resources Inc. reached an agreement to clear its roughly $18 million of debt, the San Antonio-based company said Feb. 14.
As part of the deal, EnerJex will sell all of its oil and gas properties in Colorado, Texas and Nebraska and also pay $3.3 million to a group of investors unrelated to the company. In exchange, the investor group will forgive the company's $17.925 million of secured indebtedness.
In addition, EnerJex will retain its Kansas-based assets, which it said generates the majority of the company's revenue and cash flow.
Currently, EnerJex's board is developing plans to generate the funds needed to pay the investor group and provide working capital. The company said it is considering debt or equity financings.
EnerJex also said Louis G. Schott has been named interim CEO. Schott has about 20 years of experience in the oil and gas industry, according to the release.
The appointment follows the resignation of Robert G. Watson Jr. as CEO and director, who is leaving EnerJex to pursue other business opportunities, the company said.
EnerJex CFO Douglas M. Wright has also resigned, but will continue with the company to complete 2016 filings with the Securities and Exchange Commission and prepare for its annual meeting. EnerJex said there were no disagreements between Wright and the company in regard to his resignation.
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