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SOUTHPEN

04/05/11 10:51 AM

#1679 RE: Hot_Oatmeal #1678

I don't see a problem with a loan issued to a company that has 3 deals in the works for expansion thereby greatly increasing revenue's.(long term). Last year DEJ to my understanding had about 7 million in total debt ,2 mil was paid off and the end result is carrying a loan which available cash could pay off. That's the way business works.If they did not have the ability to a loan facility is where there would be a problem The Loan right now is 4.8 m and they have 4.7 m cash. They have obligations with drilling on leased property that have to be met ,this year therefore ,while waiting for revenue to pick up from Woodrush ,DEJ continues expansion into Woodrush extension with a JV, South Rangley drilling alone and Gibson Gulch drilling with or without JV. This all needs capitol available before it starts and they cannot take the chance of losing out on any of these expansions at this opportunistic time. Well done DEJOUR.