Dejour Closes C$3.5 Million Debt Facility
Completes Financing of Initial Kokopelli Production
VANCOUVER, British Columbia -- June 19, 2013
Dejour Energy Inc. (NYSE MKT: DEJ / TSX: DEJ) (the “Company” or “Dejour”), an
independent oil and natural gas exploration and production company operating
in North America's Piceance Basin and Peace River Arch regions, announces that
it has closed a fixed term, interest only, C$3.5 million debt facility due
December 2014, with Calgary, Canada based Invico Performance Yield Fund
Limited Partnership. The interest rate is 14% per annum and the principal is
repayable at any time following 6 months from today without penalty. The loan
facility has been structured as two advances of C$2.5 million and C$1 million,
As previously reported, the Company is preparing for initial production at its
Kokopelli project and enjoys a 72% WI in the entire acreage, with an average
93% gross WI in the initial four wells, subject to a previously announced
production sharing agreement with a Denver based drilling fund. With the
realization of firmer gas prices to date in 2013 and increased deeper drilling
activity in the Basin, most notably by WPX Energy (NYSE:WPX), Dejour is now
modeling Kokopelli for the next wave of development. The Company estimates the
potential to drill 27 deeper Mancos/Niobrara wells and more than 200
additional Williams Fork wells on its two leases that comprise a total of 2200
gross acres at Kokopelli. Plans are being implemented to drill a high
potential Mancos production test at Kokopelli in Q4 2013.
The first advance was delivered to the Company today and will be partially
applied towards full repayment and cancellation of the C$1.45 million “Tranche
B” credit facility and the retirement of an additional C$200,000 against the
Company’s conventional “Tranche A” loan outstanding with its Canadian Bank.
This remains a conventional, reserve-based C$3.5mm facility bearing interest
monthly at Prime + 1%.
The balance of the first advance and the second advance of C$1.0 million to be
received in July 2013 is earmarked for working capital including the final
costs related to the initiation of NGL rich gas production from 4 wells at the
Company’s Kokopelli project currently underway in Colorado.
In connection with this financing, the Company will issue to the lender
7,291,667 common share purchase warrants at an exercise price of C$0.24 per
share, exercisable for a period of 2 years. A 3.5% fee is payable in cash to
Colonial Advisory, agent for the transaction.
“We are excited about the association with this Canadian institutional lender.
This financing provides Dejour with additional capital to support the
production initiation at our flagship Kokopelli, Piceance Basin, Colorado
liquids-rich gas property and solidifies an ongoing comfortable relationship
with the Company’s existing Canadian bank. Dejour can now confidently move
forward, joining the ranks as a NW Colorado gas and NGL producer,” Robert L.
Hodgkinson, Dejour’s Co-chairman and CEO commented.
Dejour Energy Inc. is an independent oil and natural gas exploration and
production company operating projects in North America’s Piceance Basin and
environs (approximately 117,500 net acres) and Peace River Arch regions
(approximately 7,500 net acres). Dejour’s seasoned management team has
consistently been among early identifiers of premium energy assets, repeatedly
timing investments and transactions to realize their value to shareholders'
best advantage. Dejour maintains offices in Denver, USA, Calgary and
Vancouver, Canada. The company is publicly traded on the New York Stock
Exchange MKT (NYSE MKT: DEJ) and Toronto Stock Exchange (TSX: DEJ).
Statements Regarding Forward-Looking Information: This news release contains
statements about oil and gas production operating activities, the use of
proceeds, and the closing of the second advance, that may constitute
"forward-looking statements" or “forward-looking information” within the
meaning of applicable securities legislation as they involve the implied
assessment that the resources described can be profitably produced in the
future, based on certain estimates and assumptions. Forward-looking statements
are based on current expectations, estimates and projections that involve a
number of risks, uncertainties and other factors that could cause actual
results to differ materially from those anticipated by Dejour and described in
the forward- looking statements. These risks, uncertainties and other factors
include, but are not limited to, adverse general economic conditions,
operating hazards, drilling risks, inherent uncertainties in interpreting
engineering and geologic data, competition, reduced availability of drilling
and other well services, fluctuations in oil and gas prices and prices for
drilling and other well services, government regulation and foreign political
risks, fluctuations in the exchange rate between Canadian and US dollars and
other currencies, as well as other risks commonly associated with the
exploration and development of oil and gas properties. Additional information
on these and other factors, which could affect Dejour’s operations or
financial results, are included in Dejour’s reports on file with Canadian and
United States securities regulatory authorities. We assume no obligation to
update forward-looking statements should circumstances or management's
estimates or opinions change unless otherwise required under securities law.
The TSX does not accept responsibility for the adequacy or accuracy of this
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Dejour Energy Inc.
Robert L. Hodgkinson, 604-638-5050
Co-Chairman & CEO
Craig Allison, 914-882-0960
Investor Relations – New York
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