DEJ: Dejour Energy signs $27.5M LOI with Singapore based energy co.
Dejour Energy announces that it has signed a letter of intent to create a strategic joint venture partnership with a private Singapore based energy company to develop the company’s Colorado oil and gas assets. Upon completion of due diligence, legal documentation and requisite approvals expected prior to January 31, 2014, SECO will invest an initial sum of up to $27.5M in 2014 and 2015 to earn an 85% share in Dejour’s interests in its Colorado properties, primarily Kokopelli, subject to certain interest claw backs available to Dejour. Following this capital investment by SECO, the partners will continue to judiciously develop the reserves on a pro rata basis. The terms of the agreement include a capital injection to Dejour of approximately US$ 4.5M, including cash and assumption of certain liability agreements on outstanding debt and the 100% development funding of an initial $10.5M in capital expenditures in 2014 with a further $12M in 2015, targeting Kokopelli, subject to certain provisions. Additionally, SECO will assume 85% of the ongoing overhead of Dejour’s U.S. operations and joint project management during the initial period. SECO will also share responsibility to maintain the other Dejour U.S. leases in good standing on a pro rata ownership basis or return them to Dejour in a timely fashion. Dejour will remain the operator of record.
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