Dejour Energy Inc. (NYSE MKT: 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 second quarter period ended June 30, 2012.
Co-Chairman and CEO Robert Hodgkinson states, "I am pleased to report that we are on schedule to undertake the initial development of our valuable 'liquids-rich' project at Kokopelli and expect to mobilize a rig in the next few weeks. Given recent softness in NGL prices, our program has been prudently adjusted and one well will be drilled in 2012 to meet the minimum investment required to preserve our lease position in Kokopelli. Additional development drilling will be deferred until early 2013 and the size of the program will depend on continued recovery of natural gas and NGL prices, which appear to have hit bottom in April and May of this year.”
Q2 2012 Highlights
During the quarter, the Company achieved the following major objectives and also made significant progress on key strategic initiatives that resulted in:
Successfully reached an agreement on a binding term sheet for a US$14 million line of credit from an U.S. institutional lender to fund the development of its U.S. oil and gas leases, subject to certain closing conditions. Subsequent to the end of the quarter, the Company has agreed with the lender to amend the proposed line of credit to US$7.5 million, subject to certain terms, conditions and requirements, which are currently under discussion. This is consistent with the Company’s current drilling plans.
Raised gross proceeds of US$4.7 million in equity under challenging market conditions, allowing the Company to support exploration, development and acquisition of oil and gas properties and for working capital purposes.
- Maximize oil production at the Woodrush Project;
- Close the initial line of credit for our first and second increment of drilling at Kokopelli;
- Drill and complete our first well at Kokopelli in the second half of 2012.
- Focus on oil commercialization opportunities at the Company’s North and South Rangely leaseholds.
Summary of Selected Financial Highlights
|Three months ended June 30,||Six months ended June 30,|
|Operating Cash Flow (1)||(496,000)||(260,000)||(964,000)||(753,000)|
|Operating Loss (1)||(1,261,000)||(797,000)||(2,716,000)||(1,994,000)|
|Adjusted EBITDA (1)||(291,000)||6,000||(638,000)||(236,000)|
|Net loss per share||(0.004)||(0.002)||(0.007)||(0.019)|
|(1)||A non-GAAP measure, which is defined in the “Non-GAAP Measures” section of this news release.|
Summary of Selected Operational Highlights
|DEAL Production and Netback Summary|
|Three months ended June 30,||Six months ended March 31,|
|Oil and natural gas liquids (bbls/d)||215||185||210||161|
|Natural gas (mcf/d)||1,146||614||1,209||1,119|
|Average Price Received:|
|Oil and natural gas liquids ($/bbls)||78.85||94.83||83.53||89.64|
|Natural gas ($/mcf)||2.16||3.91||2.32||3.90|
|Operating and Transportation Expenses ($/BOE)||
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