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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 fourth quarter period ended December 31, 2011.
Co-Chairman and CEO Robert Hodgkinson states, "We have made significant progress in 2011 and have multiple projects with near term catalysts in 2012. Dejour continues to execute on our overall strategy of enhancing core value through a combination of production and development initiatives intended to increase our future oil and natural gas liquids (“NGL”) production as well as the overall reserve base of the Company. Woodrush, Kokopelli, South Rangely and North Rangely represent compelling projects and we are focused on converting these opportunities into strong returns for all of our stakeholders."
Q4 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 $2.5 million compared to Q4 2010;
Oil and gas production increased to 471 BOE/day (51% oil), up by 12.7% from Q4 2010;
Completed a third oil producer at the Woodrush Project;
Successfully fractured and stimulated our discovery well at South Rangely that flowed liquids rich gas from the Mancos ‘B’ Sand in commercial quantities; and
Finalized requirements for drilling on the Company’s federal leases at Kokopelli, resulting in the first 4 of 42 Phase 1 drilling permits being issued in October 2011 and commenced construction of the first drilling pad with production expected to begin in the second half of 2012.
Near-Term Corporate Objectives
Maximize oil production at the Woodrush Project;
Close project funding commitment for the initial drilling at Kokopelli as debt financing;
Continue pre-drill operations at Kokopelli in preparation for Q2 2012 drilling; and
Fully evaluate the successful test well drilled at South Rangely and prepare Hz exploitation plan.
Summary of Selected Financial Highlights
Quarter Ended December 31,
Year Ended December 31,
Operating cash flow (1)
Operating loss (1)
Adjusted EBITDA (1)
Net loss per share
(1) A non-GAAP measure, which is defined in the “Non-GAAP Measures” section of this news release.
Summary of Selected Operational Highlights
DEAL Production and Netback Summary
Three Months Ended December 31,
Year Ended December 31,
Oil and natural gas liquids (bbls/d)
Average Price Received:
Oil and natural gas liquids ($/bbls)
Operating and Transportation Expenses ($/BOE)
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.