SAN ANTONIO, TX, United States, via eTeligis Inc., 07/09/2014 - - EnerJexResources, Inc. (NYSE MKT:ENRJ) (NYSE MKT:ENRJ.PR) ("EnerJex" or the "Company") announced today that it has declared a monthly cash dividend on its non-convertible 10.0% SeriesACumulative Redeemable Perpetual Preferred Stock ("Series A Preferred Stock"). The dividend is for the period beginning on June 20, 2014 (the date of the first issuance of shares of the SeriesAPreferred Stock) through July 31, 2014, and it is payable on July 31, 2014 to holders of record at the close of business on July 15, 2014.
The July dividend payment will be based on an annualized rate of 10.00% per share, which is equivalent to $0.277778 per share (including the partial June period), based on the $25.00 per share liquidation preference of the SeriesAPreferred Stock.EnerJex'sSeriesAPreferred Stock is listed on the NYSE MKT under the ticker symbol "ENRJ.PR".
Expected Tax Treatment
ForEnerJex'sfiscal year ending December 31, 2014, some or all of the monthly preferred stock dividends may be treated for tax purposes as return of capital to shareholders. To the extent such dividends are treated as return of capital, they will not be reported as taxable income to the recipients, but will instead generally be treated as a reduction in the shareholder's basis in the stock.The Company will not be able to make a final determination regarding the tax treatment of dividends for the current fiscal year until it reports this information to recipients on Form 1099.
EnerJexResources, Inc. is an independent exploration and production company focused on the acquisition and development of oil and natural gas properties located in the mid-continent region of the United States. The Company owns oil and gas leases covering nearly 100,000 net acres in multiple prolific hydrocarbon basins located in four states including Colorado, Kansas, Nebraska, and Texas.
EnerJex'soperations are focused in five distinct projects where the company produces oil and natural gas from reservoirs that are characterized by long lived reserves with low production decline rates. Within these projects, the Company has identified more than 500 low-risk drilling locations. Through its large acreage footprint in the Denver-Julesburg ("DJ") Basin,EnerJexalso has significant exposure to emerging oil resource plays that are being pursued by competitors on trend with the Company's properties.EnerJex'sheadquarters are located in San Antonio, Texas, and additional information is available on its website atwww.enerjex.com.
This press release and the materials referenced herein include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements giveEnerJex'scurrent expectations or forecasts of future events. The statements in this press release regarding the potential listing on the NYSE MKT and offering of preferred stock, and any other effects resulting from any of those matters, are forward-looking statements. Such statements involve material risks and uncertainties, including but not limited to: whether newly drilled or newly acquired properties will produce at levels consistent with management's expectations; market conditions; whether we will experience equipment failures and, if they materialize, whether we will be able to fund repair work without materially impairing planned production levels or the availability of capital for further production increases; the ability ofEnerJexto meet its loan covenants under the debt facility that is expected to fund the costs of the new wells and to obtain financing from other sources for continued drilling; the costs of operations; delays, and any other difficulties relatedto producing oil; the ability ofEnerJexto integrate the newly producing assets; the ability to retain necessary skilled workers to operate the new producing wells; the price of oil;EnerJex'sability to market and sell produced minerals; the risks and effects of legal and administrative proceedings and governmental regulation; future financial and operational results; competition; general economic conditions; and the ability to manage and continue growth. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. Important factors that could cause actual results to differ materially from the forward-looking statements are set forth in our Form 10-K and the registrations statement for the offering of the preferred stock filed with the SEC.EnerJexundertakes no obligation to revise or update such statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.EnerJex'sproduction forecasts are dependent upon many assumptions, including estimates of production decline rates from existing wells and the outcome of future drilling activity. AlthoughEnerJexbelieves the expectations and forecasts reflected in these and other forward-looking statements are reasonable, it can give no assurance they will prove to have been correct. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties.
Robert G. Watson, Jr.