Dejour Energy USA Corp., a wholly owned subsidiary of Dejour Energy Inc. (NYSE AMEX: DEJ / TSX: DEJ) (“Dejour” or the “Company”), executed a binding commitment for a revolving credit facility from an institutional lender, to begin to develop the Kokopelli Field leases. As previously disclosed, Dejour’s Phase 1 Development at Kokopelli 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 Garfield Creek State Wildlife Area (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 March 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 in 2012. Dejour’s entire 2,200 gross acres of proven and probable undeveloped reserve leasehold in the Kokopelli Field will be held by production (HBP) as a result of this Phase 1 program.
The provisions of this revolving credit facility commitment include a 24-month term, a competitive rate of interest with flexible drawdowns subject to certain closing conditions. The Company expects to meet the closing requirements and finalize this arrangement during Q2-2012.
"We are very pleased to secure the project capital for Phase 1 development of Kokopelli, at this point in time. This enables us to finally begin to realize the true value of this asset for all stakeholders, after virtually three years of planning," states Robert Hodgkinson, CEO.“As we finalize plans for the first series of wells, we have begun to work with Williams (WPX Energy Inc., NYSE:WPX) on multiple infrastructure optimization strategies that could reduce our initial infrastructure costs for this program by as much as 25%. As we finalize these costs, we are witnessing benefits from increased availability and price competition among service providers,” adds COO, Harrison Blacker.
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