Citadel Exploration, Inc (OTCPK:COIL) announced a private placement of 26,500 series A convertible preferred stock $20 per share and 500,000 shares $0.2 per share for gross proceeds of $630,000 in September 2016. The company initially decided to issue 100,000 series A convertible preferred shares in the transaction. The stock has a 3 year term, with a 10% coupon. Each stock is convertible into 100 shares of the company’s common stock, equaling a conversion price of $0.20 a share. Additionally the series a participating preferred stock has a 2% overriding royalty on the Kern Bluff Oil Field, until conversion, at which time the overriding royalty is reduced to 1% in perpetuity.