This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Dejour Energy Secures $6.5 Million In Local Backing For Kokopelli Drilling Expansion

Stocks in this article: DEJ

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 that it has agreed to a non-dilutive financing from a private Denver based drilling fund to complete the first Kokopelli well and drill and complete up to three additional wells in early 2013. Total capital provided for additional drilling at Kokopelli will be $6.5 MM.

Dejour will contribute its interest in Federal Well 6-7-16-21 which was drilled in November (new completion schedule forthcoming to efficiently integrate the existing well completion into the program expansion), and the fund will contribute the new capital to complete the program. In addition to Dejour’s retained interest in the multi well package, the Company will receive an infrastructure usage fee of 20 cents per MCF of gas production from the wells and a 25% reversionary interest after the fund has received 125% of payout on the initial capital contribution from gas and liquids sales. The agreement also includes an option for the fund to repeat this investment under terms even more advantageous to Dejour. Dejour maintains its 72% WI in the entire 2200 acres at Kokopelli, including all the deep rights, free of any debt.

“This funding package benefits Dejour by kick starting the development of the 220 potential wells at Kokopelli with no additional cash contribution required from the Company. This arrangement provides a more efficient startup of production in 2013, and most importantly, allows Dejour to substantially de-risk the development of its acreage in this liquids rich gas field despite the current low natural gas and NGL product price environment. By accelerating project development without the incurrence of any debt obligation Dejour can now demonstrate the potential project value and is well positioned to enjoy any future increase in commodity prices while having very limited exposure to short term price softness,” says Hal Blacker, Dejour COO.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,614.81 +215.14 1.31%
S&P 500 1,941.28 +37.27 1.96%
NASDAQ 4,419.4780 +103.4040 2.40%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs