Dejour Closes $20MM Kokopelli Joint Venture
June 30 2014 - 5:15PM
Business Wire
Drilling to Commence in Q3 2014 / Company
Retires $3.5MM Debt
Dejour Energy Inc. (NYSE MKT:DEJ / TSX:DEJ), an
independent oil and natural gas exploration and production company
operating in North America's Piceance Basin and Peace River Arch
regions, today announced the Company formed a joint venture with a
private U.S. based E&P company (the Partner) to develop its
core Kokopelli leasehold in the Piceance Basin region of Colorado.
The joint venture will initially focus on developing production
from the liquids-rich Williams Fork formation on Dejour’s southern
leasehold with the expectation of drilling a minimum of 8 wells to
at least the base of the Williams Fork gas/liquids bearing zone and
obtaining an approved Surface Utility Agreement, currently being
developed in consultation with the Bureau of Land Management and
the Colorado Parks & Wildlife, for the 1,520-acre north
lease.
Dejour received ~US$3.75MM at closing and is carried for 25% for
US$16MM in drilling, completion and permitting expenditures
beginning in August 2014. It is anticipated this funding will carry
Dejour through a minimum of eight new wells and extensive facility
development on Kokopelli’s southern leasehold where four natural
gas wells drilled in 2013 are currently in production. The Company
retains a 25% working interest in the ongoing Kokopelli joint
venture and will transfer operatorship of the Kokopelli project to
the private US JV Partner resulting in a 70% G&A expense
reduction in Dejour USA.
“We are pleased that Dejour has closed the joint venture to fund
this important development phase of our flagship Kokopelli project
and fully retire the C$3.5MM debt associated with the US property,
while reducing overhead costs in the US operation. With over 200
drillable locations, 42 drill permits, significant Mancos upside, a
well-funded partner, established infrastructure and a strong gas/
liquids contracts in place, we anticipate this Kokopelli joint
venture to kick-start a long-term revenue stream for Dejour USA ,
providing flexibility for continuous bankable project development
financing,” states Robert L. Hodgkinson, CEO.
About Dejour Energy Inc.
Dejour Energy Inc. is an independent oil and natural gas
exploration and production company operating projects in North
America’s Piceance Basin (56,500 net acres) and Peace River Arch
regions (17,000 net acres). Dejour maintains offices in Denver,
USA, Calgary and Vancouver, Canada. The company is publicly traded
on the New York Stock Exchange Amex (NYSE MKT: DEJ) and Toronto
Stock Exchange (DEJ.TO).
Statements Regarding Forward-Looking Information: This
news release contains statements about oil and gas production and
operating activities 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 news release.
Follow Dejour Energy’s latest developments on:Facebook
http://facebook.com/dejourenergy and Twitter @dejourenergy
Dejour Energy Inc.Robert L. Hodgkinson,
604-638-5050Chairman & CEOFacsimile:
604-638-5051investor@dejour.comorCraig Allison,
914-882-0960Investor Relations – New Yorkcallison@dejour.com
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