Thursday, February 02, 2012 11:01:04 PM
I see you are in DEJ-
Here is some more info for you.
DEJ- Some DD For GoodFellas
Dejour Energy (DEJ) is an independent oil and gas company. Dejour has an excellent management team that made investors many times their original investment in a previous publicly traded oil company. Dejour CEO Robert Hodgkinson founded Optima Petroleum, which later became Petroquest Energy (PQ) and now trades on the NYSE. This company appears to be gathering momentum in terms of drilling progress and could be a multi-bagger in 2012. Multiple analysts have recently initiated buy ratings and one analyst has a long-term price target of $2.50 per share. Dejour could be acquired by a larger oil company because the valuation is way too low considering the drilling prospects for the next few years. In the meanwhile, the stock is making higher highs and higher lows in a very weak market, and that is a very bullish sign for future gains.
JDS81
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Monday, December 12, 2011 3:50:52 PM
Re: None
Post # of 2044
DENVER, Dec 12, 2011 (BUSINESS WIRE) -- Dejour Energy Inc. ("Dejour" or the "Company"), an independent oil and natural gas company, announced today that it has successfully fracture stimulated and is preparing to flow the test well drilled in Q3 2011 on its South Rangely leasehold, in Rio Blanco County. A 100,000 lb. slick-water fracture treatment has been executed over the entirety of the 90 feet of hydrocarbon bearing interval. As previously disclosed, this vertical well was drilled to a depth of 3863' to test the hydrocarbon bearing siltstone in the Lower Mancos"C"/Niobrara sands, up-dip from on trend oil production. Preliminary results of this post fracture stimulation testing should be known by month's end. Dejour, the project operator, has a 50% WI in the test well and an average 56% WI in the surrounding 7,000 acres.
"We are pleased to be able to test the South Rangely well before year's end to assess the future Hz development capability of this prospective oil property. Our goal is to expand both oil and liquids production and we are committed to executing our plan of increasing the PDP reserve value of our US land portfolio beginning with Gibson Gulch and South Rangely," stated Harrison Blacker, President and COO. Dejour Energy Inc. (NYSE AMEX: DEJ / TSX: DEJ) ("Dejour" or the "Company"), an independent oil and natural gas company, announced today that the vertical test well drilled at the South Rangely was successfully completed, fracture stimulated with 100,000 pounds of proppant and flow tested during late December 2011 at a consistent rate of 315 MCF per day for more than 10 days with zero decline in production or pressure.
The South Rangely leasehold is thought by Dejour to be a Mancos "C" (Niobrara) type resource play most suitable for Hz well development. The results of this vertical test have confirmed a trapped hydrocarbon presence in commercial quantities and opened up all of Dejour's remaining South Rangely acreage to lower risk exploration down structure from this gas accumulation. The Company and its partners will focus on the oil leg that is typically found down dip from similar gas accumulations in the Mancos "C" in this area. An action plan to efficiently exploit the 6,750 acres of gross leasehold operated by Dejour will be announced early in Q2-2012.
States Hal Blacker, Dejour COO, "We are encouraged by both the thickness of this Mancos "C" sand and the productivity after stimulation from this vertical well bore. We see considerable potential down dip for an oil leg in this thick accumulation. Dejour will immediately begin working with the BLM to secure additional drill permits and with partners and offset leaseholders to create a drilling unit to facilitate an orderly and efficient exploitation of this discovery."
"With the success at South Rangely, our plan now is to move tactfully to increase our US PDP reserve value beginning with the exploitation of both Gibson Gulch and South Rangely in 2012. This plan includes testing the exploration potential of other significant prospects within the balance of our 107,000 acre US land portfolio with a focus to expand oil and liquids production," Blacker concluded
Follow Dejour Energy's latest developments on: Facebook http://facebook.com/dejourenergy and Twitter @dejourenergy
SOURCE: Dejour Energy Inc.
Dejour Energy Inc.
Robert L. Hodgkinson, Co-Chairman & CEO
Phone: 604-638-5050
Facsimile: 604-638-5051
Email: investor@dejour.com
or
Craig Allison, Investor Relations -- New York
Phone: 914-882-0960
Email: callison@dejour.com
Dejour Energy Reports Positive Operating Cash Flow and Adjusted EBITDA for Q3 2011Font size: A | A | A8:00 AM ET 11/14/11 | BusinessWire
RELATED QUOTES
3:59 PM ET 12/8/11
Symbol Last % Chg
DEJ 0.35 6.94%
Real time quote.
Dejour Energy Inc. (NYSE AMEX: 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 release of its financial results for the third quarter period ended September 30, 2011.
Co Chairman and CEO Robert Hodgkinson states, "We continue to execute on our strategy and have made solid progress with our initiatives at Woodrush, Gibson Gulch and South Rangely. With a 78% sequential increase in oil production at Woodrush in Q3, a further production increase anticipated over the next six months and a robust, liquids rich, gas development initiation currently underway at Gibson Gulch, Dejour is now poised to realize the true cash value of its proven asset base."
Q3 2011 Highlights
During the quarter, the Company achieved the following major objectives and also made significant progress on key strategic initiatives:
-- Increased gross revenue by 62% to $2.9 million from Q2 2011
-- Generated a positive Operating Cash Flow, EBITDA and Adjusted EBITDA for the quarter
-- Oil and gas production increased to 514 BOE/day (64% oil), up by 78% from Q2 2011.
-- Closed a $7 million line of credit from a Canadian bank to refinance bridge loans and to provide funds for general corporate purposes. This facility is at an interest rate of Prime + 1% (total 4% p.a. currently).
-- Completed all requirements for drilling on the Company's federal leases at Gibson Gulch, resulting in the first drilling permits being issued in October 2011.
Near-Term Corporate Objectives
-- Continue to increase positive Adjusted EBITDA, and Operating Cash Flow;
-- Maximize oil production at the Woodrush field with drilling of 3rd oil well;
-- Close project funding commitment for Phase 1 drilling at Gibson Gulch as debt financing;
-- Commence pre-drill operations at Gibson Gulch in preparation for Q1 2012 drilling; and
-- Fully evaluate the test well drilled at South Rangely.
View data
Summary of Selected Financial Highlights
(Unaudited)
-------------------------------------------------------------
Q3 2011 Q2 2011 Q1 2011 Q3 2010
$ $ $ $
--------- --------- ----------- ---------
Gross revenue 2,947,000 1,816,000 1,584,000 2,534,000
Net loss (346,000) (189,000) (2,079,000) (631,000)
Net loss per share (0.003) (0.002) (0.018) (0.006)
Operating cash flow (1) 682,000 (260,000) (495,000) 686,000
Operating loss (1) (48,000) (798,000) (1,196,000) (511,000)
EBITDA (1) 1,341,000 591,000 (1,305,000) 721,000
Adjusted EBITDA (1) 948,000 6,000 (202,000) 968,000
(1) A non-GAAP measure, which is defined in the
"Non-GAAP Measures" section of this news release.
Summary of Selected Financial Highlights (Unaudited) ------------------------------------------------------------- Q3 2011 Q2 2011 Q1 2011 Q3 2010 $ $ $ $ --------- --------- ----------- --------- Gross revenue 2,947,000 1,816,000 1,584,000 2,534,000 Net loss (346,000) (189,000) (2,079,000) (631,000) Net loss per share (0.003) (0.002) (0.018) (0.006) Operating cash flow (1) 682,000 (260,000) (495,000) 686,000 Operating loss (1) (48,000) (798,000) (1,196,000) (511,000) EBITDA (1) 1,341,000 591,000 (1,305,000) 721,000 Adjusted EBITDA (1) 948,000 6,000 (202,000) 968,000 (1) A non-GAAP measure, which is defined in the "Non-GAAP Measures" section of this news release.
View data
Summary of Selected Operational Highlights
----------------------------------------------------------------
Canadian Production
Q3 2011 Q2 2011 Q1 2011 Q3 2010
------- ------- ------- -------
Production Volumes:
Oil and natural gas liquids (bbls/d) 327 185 136 307
Gas (mcf/d) 1,120 614 1,630 1,818
------- ------- ------- -------
Total (BOE/d) 514 287 408 610
Average Price Received:
Oil and natural gas liquids ($/bbls) 85.37 94.83 82.51 66.77
Gas ($/mcf) 3.66 3.91 3.89 3.81
------- ------- ------- -------
Total ($/BOE) 62.34 69.44 43.13 45.16
Summary of Selected Operational Highlights ---------------------------------------------------------------- Canadian Production Q3 2011 Q2 2011 Q1 2011 Q3 2010 ------- ------- ------- ------- Production Volumes: Oil and natural gas liquids (bbls/d) 327 185 136 307 Gas (mcf/d) 1,120 614 1,630 1,818 ------- ------- ------- ------- Total (BOE/d) 514 287 408 610 Average Price Received: Oil and natural gas liquids ($/bbls) 85.37 94.83 82.51 66.77 Gas ($/mcf) 3.66 3.91 3.89 3.81 ------- ------- ------- ------- Total ($/BOE) 62.34 69.44 43.13 45.16
Note: Effective January 1, 2011, the Company adopted International Financial Reporting standards ("IFRS"), which are also generally accepted accounting principles ("GAAP") for publicly accountable enterprises in Canada. In accordance with the standard related to the first time adoption of IFRS, the Company's transition date to IFRS was January 1, 2010 and therefore the comparative information for 2010 has been prepared in accordance with IFRS accounting policies.
Third Quarter 2011 Conference Call Information
The Company has scheduled a conference call for Monday, November 14, 2011 at 1:00 p.m. EST. Interested parties can join the live event by dialing 1-866-321-8231 at least 10 minutes prior to the start of the call, conference ID: 3984256. Participants from outside North America can join the event by dialing +1-416-642-5213 and utilizing the same conference ID.
View data
Condensed Consolidated Balance Sheets (Unaudited)
As at September 30, As at December 31,
2011 2010
$ $
Assets:
Cash and cash equivalents 512,000 4,758,000
Other current assets 1,217,000 781,000
Exploration and evaluation assets 10,735,000 10,257,000
Property, plant and equipment 17,901,000 14,175,000
Other non-current assets 389,000 442,000
------------------- ------------------
Total assets 30,754,000 30,413,000
=================== ==================
Liabilities and shareholders' equity:
Bank line of credit and bridge loan 4,308,000 4,800,000
Accounts payable and accrued liabilities 2,329,000 2,909,000
Warrant liability 905,000 1,181,000
Other long-term liabilities 958,000 738,000
Shareholders' equity 22,254,000 20,785,000
------------------- ------------------
Total liabilities and shareholders' equity 30,754,000 30,413,000
=================== ==================
Condensed Consolidated Balance Sheets (Unaudited) As at September 30, As at December 31, 2011 2010 $ $ Assets: Cash and cash equivalents 512,000 4,758,000 Other current assets 1,217,000 781,000 Exploration and evaluation assets 10,735,000 10,257,000 Property, plant and equipment 17,901,000 14,175,000 Other non-current assets 389,000 442,000 ------------------- ------------------ Total assets 30,754,000 30,413,000 =================== ================== Liabilities and shareholders' equity: Bank line of credit and bridge loan 4,308,000 4,800,000 Accounts payable and accrued liabilities 2,329,000 2,909,000 Warrant liability 905,000 1,181,000 Other long-term liabilities 958,000 738,000 Shareholders' equity 22,254,000 20,785,000 ------------------- ------------------ Total liabilities and shareholders' equity 30,754,000 30,413,000 =================== ==================
View data
Consolidated Statements of Comprehensive Income (Loss)
(Unaudited)
Three months ended September 30,
2011 2010
$ $
Revenues and other income:
Gross revenues 2,947,000 2,534,000
Royalties (614,000) (361,000)
--------- --------------------
Revenues, net of royalties 2,333,000 2,173,000
Financial instrument gain - 10,000
Other income 9,000 9,000
--------- --------------------
2,342,000 2,192,000
--------- --------------------
Expenses:
Operating and transportation 664,000 545,000
General and administrative 718,000 670,000
Finance costs 270,000 313,000
Stock-based compensation 151,000 170,000
Foreign exchange loss 11,000 9,000
Amortization, depletion and impairment losses 1,417,000 1,039,000
Change in fair value of warrant liability (543,000) 77,000
--------- --------------------
2,688,000 2,823,000
--------- --------------------
Loss before income taxes (346,000) (631,000)
Deferred income tax recovery - -
--------- --------------------
Net loss for the period (346,000) (631,000)
Foreign currency translation adjustment 991,000 (446,000)
--------- --------------------
Comprehensive income (loss) (645,000) (1,077,000)
========= ====================
Net loss per common share - basic and diluted (0.003) (0.006)
========= ====================
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) Three months ended September 30, 2011 2010 $ $ Revenues and other income: Gross revenues 2,947,000 2,534,000 Royalties (614,000) (361,000) --------- -------------------- Revenues, net of royalties 2,333,000 2,173,000 Financial instrument gain - 10,000 Other income 9,000 9,000 --------- -------------------- 2,342,000 2,192,000 --------- -------------------- Expenses: Operating and transportation 664,000 545,000 General and administrative 718,000 670,000 Finance costs 270,000 313,000 Stock-based compensation 151,000 170,000 Foreign exchange loss 11,000 9,000 Amortization, depletion and impairment losses 1,417,000 1,039,000 Change in fair value of warrant liability (543,000) 77,000 --------- -------------------- 2,688,000 2,823,000 --------- -------------------- Loss before income taxes (346,000) (631,000) Deferred income tax recovery - - --------- -------------------- Net loss for the period (346,000) (631,000) Foreign currency translation adjustment 991,000 (446,000) --------- -------------------- Comprehensive income (loss) (645,000) (1,077,000) ========= ==================== Net loss per common share - basic and diluted (0.003) (0.006) ========= ====================
View data
Condensed Consolidated Statements of Cash Flows (Unaudited)
Three months ended September 30,
2011 2010
$ $
Cash, beginning of period 1,834,000 3,020,000
Cash from (used in) operating activities 602,000 (160,000)
Cash used in investing activities:
Deposits 53,000 26,000
Exploration and evaluation assets (147,000) (182,000)
Additions to property, plant and equipment (950,000) (110,000)
Changes in non-cash investing working capital (869,000) (1,230,000)
----------- ------------------
Total cash used in investing activities (1,913,000) (1,496,000)
----------- ------------------
Cash from (used in) financing activities (11,000) 1,046,000
Cash, end of period 512,000 2,410,000
=========== ==================
Condensed Consolidated Statements of Cash Flows (Unaudited) Three months ended September 30, 2011 2010 $ $ Cash, beginning of period 1,834,000 3,020,000 Cash from (used in) operating activities 602,000 (160,000) Cash used in investing activities: Deposits 53,000 26,000 Exploration and evaluation assets (147,000) (182,000) Additions to property, plant and equipment (950,000) (110,000) Changes in non-cash investing working capital (869,000) (1,230,000) ----------- ------------------ Total cash used in investing activities (1,913,000) (1,496,000) ----------- ------------------ Cash from (used in) financing activities (11,000) 1,046,000 Cash, end of period 512,000 2,410,000 =========== ==================
View data
Operating Cash Flow (see
"Non-GAAP Measures" section below for explanation)
------------------------------------------------------------------------------------
Q3 2011 Q2 2011 Q1 2011 Q3 2010
-------- ----------- --------- ---------
$ $ $ $
Cash from (used) in operating activities - GAAP 602,000 (2,113,000) (691,000) (160,000)
Less: changes in non-cash working capital (80,000) (1,853,000) (619,000) (846,000)
-------- ----------- --------- ---------
Operating Cash Flow - Non-GAAP 682,000 (260,000) (72,000) 686,000
======== =========== ========= =========
Operating Cash Flow (see "Non-GAAP Measures" section below for explanation) ------------------------------------------------------------------------------------ Q3 2011 Q2 2011 Q1 2011 Q3 2010 -------- ----------- --------- --------- $ $ $ $ Cash from (used) in operating activities - GAAP 602,000 (2,113,000) (691,000) (160,000) Less: changes in non-cash working capital (80,000) (1,853,000) (619,000) (846,000) -------- ----------- --------- --------- Operating Cash Flow - Non-GAAP 682,000 (260,000) (72,000) 686,000 ======== =========== ========= =========
View data
Operating Netback (see
"Non-GAAP Measures" section below for explanation)
-------------------------------------------------------------------------------
Q3 2011 Q2 2011 Q1 2011 Q3 2010
--------- --------- --------- ---------
$ $ $ $
Revenues 2,947,000 1,816,000 1,584,000 2,534,000
Less: Royalties (614,000) (348,000) (237,000) (362,000)
Less: Operating and transportation expenses (664,000) (471,000) (507,000) (544,000)
--------- --------- --------- ---------
Operating Netback 1,669,000 997,000 840,000 1,628,000
========= ========= ========= =========
Operating Netback (see "Non-GAAP Measures" section below for explanation) ------------------------------------------------------------------------------- Q3 2011 Q2 2011 Q1 2011 Q3 2010 --------- --------- --------- --------- $ $ $ $ Revenues 2,947,000 1,816,000 1,584,000 2,534,000 Less: Royalties (614,000) (348,000) (237,000) (362,000) Less: Operating and transportation expenses (664,000) (471,000) (507,000) (544,000) --------- --------- --------- --------- Operating Netback 1,669,000 997,000 840,000 1,628,000 ========= ========= ========= =========
View data
Operating Loss (see "Non-GAAP
Measures" section below for explanation)
-------------------------------------------------------------------------------
Q3 2011 Q2 2011 Q1 2011 Q3 2010
--------- --------- ----------- ---------
$ $ $ $
Net loss (346,000) (189,000) (2,079,000) (631,000)
Add back (losses) and deduct gains:
Impairment losses 841,000 186,000 9,000 43,000
Change in fair value of warrant liability (543,000) (795,000) 874,000 77,000
--------- --------- ----------- ---------
Operating Loss (48,000) (798,000) (1,196,000) (511,000)
========= ========= =========== =========
Operating Loss (see "Non-GAAP Measures" section below for explanation) ------------------------------------------------------------------------------- Q3 2011 Q2 2011 Q1 2011 Q3 2010 --------- --------- ----------- --------- $ $ $ $ Net loss (346,000) (189,000) (2,079,000) (631,000) Add back (losses) and deduct gains: Impairment losses 841,000 186,000 9,000 43,000 Change in fair value of warrant liability (543,000) (795,000) 874,000 77,000 --------- --------- ----------- --------- Operating Loss (48,000) (798,000) (1,196,000) (511,000) ========= ========= =========== =========
View data
EBITDA(see
"Non-GAAP Measures" section below for explanation)
-----------------------------------------------------------------------------------
Q3 2011 Q2 2011 Q1 2011 Q3 2010
--------- --------- ----------- ---------
$ $ $ $
Net loss (346,000) (189,000) (2,079,000) (631,000)
Deferred income tax recovery - - (187,000) -
Finance costs 270,000 282,000 243,000 313,000
Amortization, depletion and impairment losses 1,417,000 498,000 718,000 1,039,000
--------- --------- ----------- ---------
EBITDA 1,341,000 591,000 (1,305,000) 721,000
========= ========= =========== =========
EBITDA(see "Non-GAAP Measures" section below for explanation) ----------------------------------------------------------------------------------- Q3 2011 Q2 2011 Q1 2011 Q3 2010 --------- --------- ----------- --------- $ $ $ $ Net loss (346,000) (189,000) (2,079,000) (631,000) Deferred income tax recovery - - (187,000) - Finance costs 270,000 282,000 243,000 313,000 Amortization, depletion and impairment losses 1,417,000 498,000 718,000 1,039,000 --------- --------- ----------- --------- EBITDA 1,341,000 591,000 (1,305,000) 721,000 ========= ========= =========== =========
View data
Adjusted EBITDA (see "Non-GAAP
Measures" section below for explanation)
-----------------------------------------------------------------------------
Q3 2011 Q2 2011 Q1 2011 Q3 2010
--------- --------- ----------- -------
$ $ $ $
EBITDA 1,341,000 591,000 (1,305,000) 721,000
Adjustments:
Non-cash stock-based compensation 150,000 210,000 189,000 170,000
Unrealized financial instrument loss - - 40,000 -
Change in fair value of warrant liability (543,000) (795,000) 874,000 77,000
--------- --------- ----------- -------
Adjusted EBITDA 948,000 6,000 (202,000) 968,000
========= ========= =========== =======
Adjusted EBITDA (see "Non-GAAP Measures" section below for explanation) ----------------------------------------------------------------------------- Q3 2011 Q2 2011 Q1 2011 Q3 2010 --------- --------- ----------- ------- $ $ $ $ EBITDA 1,341,000 591,000 (1,305,000) 721,000 Adjustments: Non-cash stock-based compensation 150,000 210,000 189,000 170,000 Unrealized financial instrument loss - - 40,000 - Change in fair value of warrant liability (543,000) (795,000) 874,000 77,000 --------- --------- ----------- ------- Adjusted EBITDA 948,000 6,000 (202,000) 968,000 ========= ========= =========== =======
Revenue
In Q3 2011, the Company recorded $2,947,000 in gross oil and natural gas sales before royalty, as compared to $1,816,000 in Q2 2011, $1,584,000 in Q1 2011 and $2,534,000 in Q3 2010. The increase in gross revenues was due to higher oil and gas production for the current quarter. The substantial increase in oil production for the current quarter was due to the response of the Halfway "E" Pool to the water injection that commenced in March 2011. Oil production for the current quarter was 82% higher than Q2 2011.
Liquidity and Capital Resources
Cash Balance
The Company had cash and cash equivalents of $512,000 as at September 30, 2011. In addition to the cash balance, the Company has an unused line of credit of $2.7 million from a Canadian Bank.
Bank Line of Credit Financing
In September 2011, the Company obtained a $7 million line of credit from a Canadian Bank to refinance the bridge loan of $4.1 million and to provide operating funds. The line of credit, repayable on demand by the bank, is at an interest rate of Prime + 1% (total 4% p.a. currently). As at September 30, 2011, a total of $4.3 million of this facility was utilized.
About Dejour
Dejour Energy Inc. is an independent oil and natural gas exploration and production company operating projects in North America's Piceance Basin (107,000 net acres) and Peace River Arch regions (15,000 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 Amex (NYSE AMEX: DEJ) and Toronto Stock Exchange (TSX: DEJ).
Non-GAAP Measures: This news release contains references to non-GAAP measures as follows:
Operating Cash Flow is a non-GAAP measure defined as net cash provided by operating activities before changes in assets and liabilities.
Operating Netback is a non-GAAP measure defined as revenues less royalties and operating and transportation expenses.
Operating Loss is a non-GAAP measure defined as net income (loss) excluding non-cash items that management believes affects the comparability of operating results. These items may include, but are not limited to, unrealized financial instrument gain (loss), impairment losses and impairment reversals, gain (loss) on divestitures, and change in fair value of financial instruments.
EBITDA is a non-GAAP measure defined as net income (loss) before income tax expense, interest expense and finance fee, and amortization, depletion and accretion.
Adjusted EBITDA excludes certain items that management believes affect the comparability of operating results. Items excluded generally are non-cash items, one-time items or items whose timing or amount cannot be reasonably estimated.
Non-GAAP measures are commonly used in the oil and gas industry. Certain measures in this document do not have any standardized meaning as prescribed by IFRS and previous GAAP such as Operating Cash Flow, Operating Netback, Operating Loss, EBITDA and Adjusted EBITDA and therefore are considered non-GAAP measures. These measures may not be comparable to similar measures presented by other issuers. These measures have been described and presented in this document in order to provide shareholders and potential investors with additional information regarding our liquidity and our ability to generate funds to finance our operations.
BOE Presentation: Barrel of oil equivalent amounts have been calculated using a conversion rate of six thousand cubic feet of gas to one barrel of oil. The term "BOE" may be misleading if used in isolation. A BOE conversion ratio of one barrel of oil to six mcf of gas is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the well head. Total BOEs are calculated by multiplying the daily production by the number of days in the period.
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.
Dejour Energy Drills 3rd Successful Oil Well at Woodrush
Dejour Energy Inc. Ltd Ordinary Shares (Canada) New (AMEX:DEJ)
Today : Tuesday 22 November 2011
Dejour Energy, Inc. (NYSE-AMEX: DEJ / TSX: DEJ) drilled a third well (A-B-1) into the halfway oil pool at its 75% owned Woodrush project in the Peace River Arch, NE British Columbia. Oil was visible within the pit during drilling operations. Logs indicate 8 feet of porous oil bearing Halfway sands, slightly thinner than expected. Well casing is now being set. Completion operations will commence by month's end with production expected in Q4 2011.
“We are pleased with the drilling results at Woodrush and expect to expand oil production in Q4 and beyond. It is very satisfying for the Dejour team to execute ahead of schedule and to capture the royalty discount afforded new producers for our shareholders,” stated Harrison Blacker, President and COO.
Dejour Energy USA Corp., a wholly owned subsidiary of Dejour Energy Inc. (NYSE AMEX: DEJ / TSX: DEJ) ("Dejour" or the "Company"), received today unanimous final approval from the Colorado Wildlife Commission (CPW) of the Surface Use Agreement that permits Dejour to construct three additional well pads along with the associated access roads, gathering lines, and production facilities within the boundaries of the Garfield Creek State Wildlife Area (GCSWA) as part of the Phase 1 development of its Kokopelli Field leases.
Dejour's Phase 1 Developments at Kokopelli now includes a total of four well pads along with associated access roads, gathering lines, and production facilities. Dejour can drill and complete up to forty two Williams Fork wells within this framework, initially; twenty-four of which are scheduled through 2013. Development activities on Dejour's leasehold adjacent to the GCSWA began in November 2011 with the construction of the first of the four Phase 1 drilling pads on acreage located just outside of the GCSWA. (see cover of Dejour's January 2012 PPT). This approval for expansion into the GCSWA was a critical and final step in the regulatory approval process leading to the commencement of drilling later this year. Dejour's entire 2200 gross acres of proven undeveloped reserve leasehold in the Kokopelli Field will be held by production through only a small portion of the wells drilled in Phase 1.
"The CPW and Dejour conducted extensive analysis that included baseline wildlife and water studies and a broad array of best management practices. The recognition by both Dejour and the CPW of the need to properly protect this sensitive wildlife area resulted in a well-balanced agreement that allows Dejour's low impact energy development to coexist with the wildlife management and conservation efforts of the CPW. Dejour is very appreciative of the significant efforts of key personnel within the CPW to affirmatively conclude this approval process," stated COO, Hal Blacker.
www.dejour.com/docs/dej_presentation.pdf
fossil.energy.gov/programs/reserves/npr/Oil_Shale_Resource_Fact_Sheet.pdf
seekingalpha.com/article/312661-dejour-energy-the-market-has-not-yet-realized-this-diamond-in-the-rough
shortsqueeze.com/?symbol=dej&submit=Short+Quote%99
Here is some more info for you.
DEJ- Some DD For GoodFellas
Dejour Energy (DEJ) is an independent oil and gas company. Dejour has an excellent management team that made investors many times their original investment in a previous publicly traded oil company. Dejour CEO Robert Hodgkinson founded Optima Petroleum, which later became Petroquest Energy (PQ) and now trades on the NYSE. This company appears to be gathering momentum in terms of drilling progress and could be a multi-bagger in 2012. Multiple analysts have recently initiated buy ratings and one analyst has a long-term price target of $2.50 per share. Dejour could be acquired by a larger oil company because the valuation is way too low considering the drilling prospects for the next few years. In the meanwhile, the stock is making higher highs and higher lows in a very weak market, and that is a very bullish sign for future gains.
JDS81
Share
Monday, December 12, 2011 3:50:52 PM
Re: None
Post # of 2044
DENVER, Dec 12, 2011 (BUSINESS WIRE) -- Dejour Energy Inc. ("Dejour" or the "Company"), an independent oil and natural gas company, announced today that it has successfully fracture stimulated and is preparing to flow the test well drilled in Q3 2011 on its South Rangely leasehold, in Rio Blanco County. A 100,000 lb. slick-water fracture treatment has been executed over the entirety of the 90 feet of hydrocarbon bearing interval. As previously disclosed, this vertical well was drilled to a depth of 3863' to test the hydrocarbon bearing siltstone in the Lower Mancos"C"/Niobrara sands, up-dip from on trend oil production. Preliminary results of this post fracture stimulation testing should be known by month's end. Dejour, the project operator, has a 50% WI in the test well and an average 56% WI in the surrounding 7,000 acres.
"We are pleased to be able to test the South Rangely well before year's end to assess the future Hz development capability of this prospective oil property. Our goal is to expand both oil and liquids production and we are committed to executing our plan of increasing the PDP reserve value of our US land portfolio beginning with Gibson Gulch and South Rangely," stated Harrison Blacker, President and COO. Dejour Energy Inc. (NYSE AMEX: DEJ / TSX: DEJ) ("Dejour" or the "Company"), an independent oil and natural gas company, announced today that the vertical test well drilled at the South Rangely was successfully completed, fracture stimulated with 100,000 pounds of proppant and flow tested during late December 2011 at a consistent rate of 315 MCF per day for more than 10 days with zero decline in production or pressure.
The South Rangely leasehold is thought by Dejour to be a Mancos "C" (Niobrara) type resource play most suitable for Hz well development. The results of this vertical test have confirmed a trapped hydrocarbon presence in commercial quantities and opened up all of Dejour's remaining South Rangely acreage to lower risk exploration down structure from this gas accumulation. The Company and its partners will focus on the oil leg that is typically found down dip from similar gas accumulations in the Mancos "C" in this area. An action plan to efficiently exploit the 6,750 acres of gross leasehold operated by Dejour will be announced early in Q2-2012.
States Hal Blacker, Dejour COO, "We are encouraged by both the thickness of this Mancos "C" sand and the productivity after stimulation from this vertical well bore. We see considerable potential down dip for an oil leg in this thick accumulation. Dejour will immediately begin working with the BLM to secure additional drill permits and with partners and offset leaseholders to create a drilling unit to facilitate an orderly and efficient exploitation of this discovery."
"With the success at South Rangely, our plan now is to move tactfully to increase our US PDP reserve value beginning with the exploitation of both Gibson Gulch and South Rangely in 2012. This plan includes testing the exploration potential of other significant prospects within the balance of our 107,000 acre US land portfolio with a focus to expand oil and liquids production," Blacker concluded
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SOURCE: Dejour Energy Inc.
Dejour Energy Inc.
Robert L. Hodgkinson, Co-Chairman & CEO
Phone: 604-638-5050
Facsimile: 604-638-5051
Email: investor@dejour.com
or
Craig Allison, Investor Relations -- New York
Phone: 914-882-0960
Email: callison@dejour.com
Dejour Energy Reports Positive Operating Cash Flow and Adjusted EBITDA for Q3 2011Font size: A | A | A8:00 AM ET 11/14/11 | BusinessWire
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3:59 PM ET 12/8/11
Symbol Last % Chg
DEJ 0.35 6.94%
Real time quote.
Dejour Energy Inc. (NYSE AMEX: 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 release of its financial results for the third quarter period ended September 30, 2011.
Co Chairman and CEO Robert Hodgkinson states, "We continue to execute on our strategy and have made solid progress with our initiatives at Woodrush, Gibson Gulch and South Rangely. With a 78% sequential increase in oil production at Woodrush in Q3, a further production increase anticipated over the next six months and a robust, liquids rich, gas development initiation currently underway at Gibson Gulch, Dejour is now poised to realize the true cash value of its proven asset base."
Q3 2011 Highlights
During the quarter, the Company achieved the following major objectives and also made significant progress on key strategic initiatives:
-- Increased gross revenue by 62% to $2.9 million from Q2 2011
-- Generated a positive Operating Cash Flow, EBITDA and Adjusted EBITDA for the quarter
-- Oil and gas production increased to 514 BOE/day (64% oil), up by 78% from Q2 2011.
-- Closed a $7 million line of credit from a Canadian bank to refinance bridge loans and to provide funds for general corporate purposes. This facility is at an interest rate of Prime + 1% (total 4% p.a. currently).
-- Completed all requirements for drilling on the Company's federal leases at Gibson Gulch, resulting in the first drilling permits being issued in October 2011.
Near-Term Corporate Objectives
-- Continue to increase positive Adjusted EBITDA, and Operating Cash Flow;
-- Maximize oil production at the Woodrush field with drilling of 3rd oil well;
-- Close project funding commitment for Phase 1 drilling at Gibson Gulch as debt financing;
-- Commence pre-drill operations at Gibson Gulch in preparation for Q1 2012 drilling; and
-- Fully evaluate the test well drilled at South Rangely.
View data
Summary of Selected Financial Highlights
(Unaudited)
-------------------------------------------------------------
Q3 2011 Q2 2011 Q1 2011 Q3 2010
$ $ $ $
--------- --------- ----------- ---------
Gross revenue 2,947,000 1,816,000 1,584,000 2,534,000
Net loss (346,000) (189,000) (2,079,000) (631,000)
Net loss per share (0.003) (0.002) (0.018) (0.006)
Operating cash flow (1) 682,000 (260,000) (495,000) 686,000
Operating loss (1) (48,000) (798,000) (1,196,000) (511,000)
EBITDA (1) 1,341,000 591,000 (1,305,000) 721,000
Adjusted EBITDA (1) 948,000 6,000 (202,000) 968,000
(1) A non-GAAP measure, which is defined in the
"Non-GAAP Measures" section of this news release.
Summary of Selected Financial Highlights (Unaudited) ------------------------------------------------------------- Q3 2011 Q2 2011 Q1 2011 Q3 2010 $ $ $ $ --------- --------- ----------- --------- Gross revenue 2,947,000 1,816,000 1,584,000 2,534,000 Net loss (346,000) (189,000) (2,079,000) (631,000) Net loss per share (0.003) (0.002) (0.018) (0.006) Operating cash flow (1) 682,000 (260,000) (495,000) 686,000 Operating loss (1) (48,000) (798,000) (1,196,000) (511,000) EBITDA (1) 1,341,000 591,000 (1,305,000) 721,000 Adjusted EBITDA (1) 948,000 6,000 (202,000) 968,000 (1) A non-GAAP measure, which is defined in the "Non-GAAP Measures" section of this news release.
View data
Summary of Selected Operational Highlights
----------------------------------------------------------------
Canadian Production
Q3 2011 Q2 2011 Q1 2011 Q3 2010
------- ------- ------- -------
Production Volumes:
Oil and natural gas liquids (bbls/d) 327 185 136 307
Gas (mcf/d) 1,120 614 1,630 1,818
------- ------- ------- -------
Total (BOE/d) 514 287 408 610
Average Price Received:
Oil and natural gas liquids ($/bbls) 85.37 94.83 82.51 66.77
Gas ($/mcf) 3.66 3.91 3.89 3.81
------- ------- ------- -------
Total ($/BOE) 62.34 69.44 43.13 45.16
Summary of Selected Operational Highlights ---------------------------------------------------------------- Canadian Production Q3 2011 Q2 2011 Q1 2011 Q3 2010 ------- ------- ------- ------- Production Volumes: Oil and natural gas liquids (bbls/d) 327 185 136 307 Gas (mcf/d) 1,120 614 1,630 1,818 ------- ------- ------- ------- Total (BOE/d) 514 287 408 610 Average Price Received: Oil and natural gas liquids ($/bbls) 85.37 94.83 82.51 66.77 Gas ($/mcf) 3.66 3.91 3.89 3.81 ------- ------- ------- ------- Total ($/BOE) 62.34 69.44 43.13 45.16
Note: Effective January 1, 2011, the Company adopted International Financial Reporting standards ("IFRS"), which are also generally accepted accounting principles ("GAAP") for publicly accountable enterprises in Canada. In accordance with the standard related to the first time adoption of IFRS, the Company's transition date to IFRS was January 1, 2010 and therefore the comparative information for 2010 has been prepared in accordance with IFRS accounting policies.
Third Quarter 2011 Conference Call Information
The Company has scheduled a conference call for Monday, November 14, 2011 at 1:00 p.m. EST. Interested parties can join the live event by dialing 1-866-321-8231 at least 10 minutes prior to the start of the call, conference ID: 3984256. Participants from outside North America can join the event by dialing +1-416-642-5213 and utilizing the same conference ID.
View data
Condensed Consolidated Balance Sheets (Unaudited)
As at September 30, As at December 31,
2011 2010
$ $
Assets:
Cash and cash equivalents 512,000 4,758,000
Other current assets 1,217,000 781,000
Exploration and evaluation assets 10,735,000 10,257,000
Property, plant and equipment 17,901,000 14,175,000
Other non-current assets 389,000 442,000
------------------- ------------------
Total assets 30,754,000 30,413,000
=================== ==================
Liabilities and shareholders' equity:
Bank line of credit and bridge loan 4,308,000 4,800,000
Accounts payable and accrued liabilities 2,329,000 2,909,000
Warrant liability 905,000 1,181,000
Other long-term liabilities 958,000 738,000
Shareholders' equity 22,254,000 20,785,000
------------------- ------------------
Total liabilities and shareholders' equity 30,754,000 30,413,000
=================== ==================
Condensed Consolidated Balance Sheets (Unaudited) As at September 30, As at December 31, 2011 2010 $ $ Assets: Cash and cash equivalents 512,000 4,758,000 Other current assets 1,217,000 781,000 Exploration and evaluation assets 10,735,000 10,257,000 Property, plant and equipment 17,901,000 14,175,000 Other non-current assets 389,000 442,000 ------------------- ------------------ Total assets 30,754,000 30,413,000 =================== ================== Liabilities and shareholders' equity: Bank line of credit and bridge loan 4,308,000 4,800,000 Accounts payable and accrued liabilities 2,329,000 2,909,000 Warrant liability 905,000 1,181,000 Other long-term liabilities 958,000 738,000 Shareholders' equity 22,254,000 20,785,000 ------------------- ------------------ Total liabilities and shareholders' equity 30,754,000 30,413,000 =================== ==================
View data
Consolidated Statements of Comprehensive Income (Loss)
(Unaudited)
Three months ended September 30,
2011 2010
$ $
Revenues and other income:
Gross revenues 2,947,000 2,534,000
Royalties (614,000) (361,000)
--------- --------------------
Revenues, net of royalties 2,333,000 2,173,000
Financial instrument gain - 10,000
Other income 9,000 9,000
--------- --------------------
2,342,000 2,192,000
--------- --------------------
Expenses:
Operating and transportation 664,000 545,000
General and administrative 718,000 670,000
Finance costs 270,000 313,000
Stock-based compensation 151,000 170,000
Foreign exchange loss 11,000 9,000
Amortization, depletion and impairment losses 1,417,000 1,039,000
Change in fair value of warrant liability (543,000) 77,000
--------- --------------------
2,688,000 2,823,000
--------- --------------------
Loss before income taxes (346,000) (631,000)
Deferred income tax recovery - -
--------- --------------------
Net loss for the period (346,000) (631,000)
Foreign currency translation adjustment 991,000 (446,000)
--------- --------------------
Comprehensive income (loss) (645,000) (1,077,000)
========= ====================
Net loss per common share - basic and diluted (0.003) (0.006)
========= ====================
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) Three months ended September 30, 2011 2010 $ $ Revenues and other income: Gross revenues 2,947,000 2,534,000 Royalties (614,000) (361,000) --------- -------------------- Revenues, net of royalties 2,333,000 2,173,000 Financial instrument gain - 10,000 Other income 9,000 9,000 --------- -------------------- 2,342,000 2,192,000 --------- -------------------- Expenses: Operating and transportation 664,000 545,000 General and administrative 718,000 670,000 Finance costs 270,000 313,000 Stock-based compensation 151,000 170,000 Foreign exchange loss 11,000 9,000 Amortization, depletion and impairment losses 1,417,000 1,039,000 Change in fair value of warrant liability (543,000) 77,000 --------- -------------------- 2,688,000 2,823,000 --------- -------------------- Loss before income taxes (346,000) (631,000) Deferred income tax recovery - - --------- -------------------- Net loss for the period (346,000) (631,000) Foreign currency translation adjustment 991,000 (446,000) --------- -------------------- Comprehensive income (loss) (645,000) (1,077,000) ========= ==================== Net loss per common share - basic and diluted (0.003) (0.006) ========= ====================
View data
Condensed Consolidated Statements of Cash Flows (Unaudited)
Three months ended September 30,
2011 2010
$ $
Cash, beginning of period 1,834,000 3,020,000
Cash from (used in) operating activities 602,000 (160,000)
Cash used in investing activities:
Deposits 53,000 26,000
Exploration and evaluation assets (147,000) (182,000)
Additions to property, plant and equipment (950,000) (110,000)
Changes in non-cash investing working capital (869,000) (1,230,000)
----------- ------------------
Total cash used in investing activities (1,913,000) (1,496,000)
----------- ------------------
Cash from (used in) financing activities (11,000) 1,046,000
Cash, end of period 512,000 2,410,000
=========== ==================
Condensed Consolidated Statements of Cash Flows (Unaudited) Three months ended September 30, 2011 2010 $ $ Cash, beginning of period 1,834,000 3,020,000 Cash from (used in) operating activities 602,000 (160,000) Cash used in investing activities: Deposits 53,000 26,000 Exploration and evaluation assets (147,000) (182,000) Additions to property, plant and equipment (950,000) (110,000) Changes in non-cash investing working capital (869,000) (1,230,000) ----------- ------------------ Total cash used in investing activities (1,913,000) (1,496,000) ----------- ------------------ Cash from (used in) financing activities (11,000) 1,046,000 Cash, end of period 512,000 2,410,000 =========== ==================
View data
Operating Cash Flow (see
"Non-GAAP Measures" section below for explanation)
------------------------------------------------------------------------------------
Q3 2011 Q2 2011 Q1 2011 Q3 2010
-------- ----------- --------- ---------
$ $ $ $
Cash from (used) in operating activities - GAAP 602,000 (2,113,000) (691,000) (160,000)
Less: changes in non-cash working capital (80,000) (1,853,000) (619,000) (846,000)
-------- ----------- --------- ---------
Operating Cash Flow - Non-GAAP 682,000 (260,000) (72,000) 686,000
======== =========== ========= =========
Operating Cash Flow (see "Non-GAAP Measures" section below for explanation) ------------------------------------------------------------------------------------ Q3 2011 Q2 2011 Q1 2011 Q3 2010 -------- ----------- --------- --------- $ $ $ $ Cash from (used) in operating activities - GAAP 602,000 (2,113,000) (691,000) (160,000) Less: changes in non-cash working capital (80,000) (1,853,000) (619,000) (846,000) -------- ----------- --------- --------- Operating Cash Flow - Non-GAAP 682,000 (260,000) (72,000) 686,000 ======== =========== ========= =========
View data
Operating Netback (see
"Non-GAAP Measures" section below for explanation)
-------------------------------------------------------------------------------
Q3 2011 Q2 2011 Q1 2011 Q3 2010
--------- --------- --------- ---------
$ $ $ $
Revenues 2,947,000 1,816,000 1,584,000 2,534,000
Less: Royalties (614,000) (348,000) (237,000) (362,000)
Less: Operating and transportation expenses (664,000) (471,000) (507,000) (544,000)
--------- --------- --------- ---------
Operating Netback 1,669,000 997,000 840,000 1,628,000
========= ========= ========= =========
Operating Netback (see "Non-GAAP Measures" section below for explanation) ------------------------------------------------------------------------------- Q3 2011 Q2 2011 Q1 2011 Q3 2010 --------- --------- --------- --------- $ $ $ $ Revenues 2,947,000 1,816,000 1,584,000 2,534,000 Less: Royalties (614,000) (348,000) (237,000) (362,000) Less: Operating and transportation expenses (664,000) (471,000) (507,000) (544,000) --------- --------- --------- --------- Operating Netback 1,669,000 997,000 840,000 1,628,000 ========= ========= ========= =========
View data
Operating Loss (see "Non-GAAP
Measures" section below for explanation)
-------------------------------------------------------------------------------
Q3 2011 Q2 2011 Q1 2011 Q3 2010
--------- --------- ----------- ---------
$ $ $ $
Net loss (346,000) (189,000) (2,079,000) (631,000)
Add back (losses) and deduct gains:
Impairment losses 841,000 186,000 9,000 43,000
Change in fair value of warrant liability (543,000) (795,000) 874,000 77,000
--------- --------- ----------- ---------
Operating Loss (48,000) (798,000) (1,196,000) (511,000)
========= ========= =========== =========
Operating Loss (see "Non-GAAP Measures" section below for explanation) ------------------------------------------------------------------------------- Q3 2011 Q2 2011 Q1 2011 Q3 2010 --------- --------- ----------- --------- $ $ $ $ Net loss (346,000) (189,000) (2,079,000) (631,000) Add back (losses) and deduct gains: Impairment losses 841,000 186,000 9,000 43,000 Change in fair value of warrant liability (543,000) (795,000) 874,000 77,000 --------- --------- ----------- --------- Operating Loss (48,000) (798,000) (1,196,000) (511,000) ========= ========= =========== =========
View data
EBITDA(see
"Non-GAAP Measures" section below for explanation)
-----------------------------------------------------------------------------------
Q3 2011 Q2 2011 Q1 2011 Q3 2010
--------- --------- ----------- ---------
$ $ $ $
Net loss (346,000) (189,000) (2,079,000) (631,000)
Deferred income tax recovery - - (187,000) -
Finance costs 270,000 282,000 243,000 313,000
Amortization, depletion and impairment losses 1,417,000 498,000 718,000 1,039,000
--------- --------- ----------- ---------
EBITDA 1,341,000 591,000 (1,305,000) 721,000
========= ========= =========== =========
EBITDA(see "Non-GAAP Measures" section below for explanation) ----------------------------------------------------------------------------------- Q3 2011 Q2 2011 Q1 2011 Q3 2010 --------- --------- ----------- --------- $ $ $ $ Net loss (346,000) (189,000) (2,079,000) (631,000) Deferred income tax recovery - - (187,000) - Finance costs 270,000 282,000 243,000 313,000 Amortization, depletion and impairment losses 1,417,000 498,000 718,000 1,039,000 --------- --------- ----------- --------- EBITDA 1,341,000 591,000 (1,305,000) 721,000 ========= ========= =========== =========
View data
Adjusted EBITDA (see "Non-GAAP
Measures" section below for explanation)
-----------------------------------------------------------------------------
Q3 2011 Q2 2011 Q1 2011 Q3 2010
--------- --------- ----------- -------
$ $ $ $
EBITDA 1,341,000 591,000 (1,305,000) 721,000
Adjustments:
Non-cash stock-based compensation 150,000 210,000 189,000 170,000
Unrealized financial instrument loss - - 40,000 -
Change in fair value of warrant liability (543,000) (795,000) 874,000 77,000
--------- --------- ----------- -------
Adjusted EBITDA 948,000 6,000 (202,000) 968,000
========= ========= =========== =======
Adjusted EBITDA (see "Non-GAAP Measures" section below for explanation) ----------------------------------------------------------------------------- Q3 2011 Q2 2011 Q1 2011 Q3 2010 --------- --------- ----------- ------- $ $ $ $ EBITDA 1,341,000 591,000 (1,305,000) 721,000 Adjustments: Non-cash stock-based compensation 150,000 210,000 189,000 170,000 Unrealized financial instrument loss - - 40,000 - Change in fair value of warrant liability (543,000) (795,000) 874,000 77,000 --------- --------- ----------- ------- Adjusted EBITDA 948,000 6,000 (202,000) 968,000 ========= ========= =========== =======
Revenue
In Q3 2011, the Company recorded $2,947,000 in gross oil and natural gas sales before royalty, as compared to $1,816,000 in Q2 2011, $1,584,000 in Q1 2011 and $2,534,000 in Q3 2010. The increase in gross revenues was due to higher oil and gas production for the current quarter. The substantial increase in oil production for the current quarter was due to the response of the Halfway "E" Pool to the water injection that commenced in March 2011. Oil production for the current quarter was 82% higher than Q2 2011.
Liquidity and Capital Resources
Cash Balance
The Company had cash and cash equivalents of $512,000 as at September 30, 2011. In addition to the cash balance, the Company has an unused line of credit of $2.7 million from a Canadian Bank.
Bank Line of Credit Financing
In September 2011, the Company obtained a $7 million line of credit from a Canadian Bank to refinance the bridge loan of $4.1 million and to provide operating funds. The line of credit, repayable on demand by the bank, is at an interest rate of Prime + 1% (total 4% p.a. currently). As at September 30, 2011, a total of $4.3 million of this facility was utilized.
About Dejour
Dejour Energy Inc. is an independent oil and natural gas exploration and production company operating projects in North America's Piceance Basin (107,000 net acres) and Peace River Arch regions (15,000 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 Amex (NYSE AMEX: DEJ) and Toronto Stock Exchange (TSX: DEJ).
Non-GAAP Measures: This news release contains references to non-GAAP measures as follows:
Operating Cash Flow is a non-GAAP measure defined as net cash provided by operating activities before changes in assets and liabilities.
Operating Netback is a non-GAAP measure defined as revenues less royalties and operating and transportation expenses.
Operating Loss is a non-GAAP measure defined as net income (loss) excluding non-cash items that management believes affects the comparability of operating results. These items may include, but are not limited to, unrealized financial instrument gain (loss), impairment losses and impairment reversals, gain (loss) on divestitures, and change in fair value of financial instruments.
EBITDA is a non-GAAP measure defined as net income (loss) before income tax expense, interest expense and finance fee, and amortization, depletion and accretion.
Adjusted EBITDA excludes certain items that management believes affect the comparability of operating results. Items excluded generally are non-cash items, one-time items or items whose timing or amount cannot be reasonably estimated.
Non-GAAP measures are commonly used in the oil and gas industry. Certain measures in this document do not have any standardized meaning as prescribed by IFRS and previous GAAP such as Operating Cash Flow, Operating Netback, Operating Loss, EBITDA and Adjusted EBITDA and therefore are considered non-GAAP measures. These measures may not be comparable to similar measures presented by other issuers. These measures have been described and presented in this document in order to provide shareholders and potential investors with additional information regarding our liquidity and our ability to generate funds to finance our operations.
BOE Presentation: Barrel of oil equivalent amounts have been calculated using a conversion rate of six thousand cubic feet of gas to one barrel of oil. The term "BOE" may be misleading if used in isolation. A BOE conversion ratio of one barrel of oil to six mcf of gas is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the well head. Total BOEs are calculated by multiplying the daily production by the number of days in the period.
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.
Dejour Energy Drills 3rd Successful Oil Well at Woodrush
Dejour Energy Inc. Ltd Ordinary Shares (Canada) New (AMEX:DEJ)
Today : Tuesday 22 November 2011
Dejour Energy, Inc. (NYSE-AMEX: DEJ / TSX: DEJ) drilled a third well (A-B-1) into the halfway oil pool at its 75% owned Woodrush project in the Peace River Arch, NE British Columbia. Oil was visible within the pit during drilling operations. Logs indicate 8 feet of porous oil bearing Halfway sands, slightly thinner than expected. Well casing is now being set. Completion operations will commence by month's end with production expected in Q4 2011.
“We are pleased with the drilling results at Woodrush and expect to expand oil production in Q4 and beyond. It is very satisfying for the Dejour team to execute ahead of schedule and to capture the royalty discount afforded new producers for our shareholders,” stated Harrison Blacker, President and COO.
Dejour Energy USA Corp., a wholly owned subsidiary of Dejour Energy Inc. (NYSE AMEX: DEJ / TSX: DEJ) ("Dejour" or the "Company"), received today unanimous final approval from the Colorado Wildlife Commission (CPW) of the Surface Use Agreement that permits Dejour to construct three additional well pads along with the associated access roads, gathering lines, and production facilities within the boundaries of the Garfield Creek State Wildlife Area (GCSWA) as part of the Phase 1 development of its Kokopelli Field leases.
Dejour's Phase 1 Developments at Kokopelli now includes a total of four well pads along with associated access roads, gathering lines, and production facilities. Dejour can drill and complete up to forty two Williams Fork wells within this framework, initially; twenty-four of which are scheduled through 2013. Development activities on Dejour's leasehold adjacent to the GCSWA began in November 2011 with the construction of the first of the four Phase 1 drilling pads on acreage located just outside of the GCSWA. (see cover of Dejour's January 2012 PPT). This approval for expansion into the GCSWA was a critical and final step in the regulatory approval process leading to the commencement of drilling later this year. Dejour's entire 2200 gross acres of proven undeveloped reserve leasehold in the Kokopelli Field will be held by production through only a small portion of the wells drilled in Phase 1.
"The CPW and Dejour conducted extensive analysis that included baseline wildlife and water studies and a broad array of best management practices. The recognition by both Dejour and the CPW of the need to properly protect this sensitive wildlife area resulted in a well-balanced agreement that allows Dejour's low impact energy development to coexist with the wildlife management and conservation efforts of the CPW. Dejour is very appreciative of the significant efforts of key personnel within the CPW to affirmatively conclude this approval process," stated COO, Hal Blacker.
www.dejour.com/docs/dej_presentation.pdf
fossil.energy.gov/programs/reserves/npr/Oil_Shale_Resource_Fact_Sheet.pdf
seekingalpha.com/article/312661-dejour-energy-the-market-has-not-yet-realized-this-diamond-in-the-rough
shortsqueeze.com/?symbol=dej&submit=Short+Quote%99
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