Dejour Executes Sale and Farmout Agreement with Multi-Billion Dollar U.S. Based E&P
Terms include a Cash Payment for a portion of the acreage and a commitment to a Multi-Well Drilling Program to earn 80% Interest in 5,100+ acres
DENVER--(BUSINESS WIRE)-- 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 executed a sale and farmout agreement covering a total of ~7,450 acres of 100% owned western Piceance Basin lands to a large NYSE listed E&P with significant operations in the Piceance and other portions of the U.S., for an undisclosed cash consideration and a commitment to carry Dejour through the drilling and completion of three earning wells, with certain performance provisions. Dejour will retain a 20% WI in over 5,100 acres in this project.
"For Dejour, this deal secures an excellent operating partner, with one of the largest producers in the Rockies, while ensuring that these high potential resource lands are adequately tested during the term of leases with Dejour retaining an ongoing participation. We look forward to the results of this mutually beneficial and highly economic collaboration," says Hal Blacker, Dejour COO.
Dejour Energy Inc. is an independent oil and natural gas exploration and production company operating projects in North America's Piceance Basin (now approximately 131,000 net acres) and Peace River Arch regions (approximately 11,000 net acres). Dejour's seasoned management team has consistently been among early identifiers of premium energy assets, repeatedly timing investments and transactions to realize their value to shareholders' best advantage. Dejour maintains offices in Denver, USA, Calgary and Vancouver, Canada. The company is publicly traded on the New York Stock Exchange MKT (NYSE MKT: DEJ) and Toronto Stock Exchange (TSX: DEJ).
Statements Regarding Forward-Looking Information: This news release contains statements about oil and gas production and operating activities that may constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities legislation as they involve the implied assessment that the resources described can be profitably produced in the future, based on certain estimates and assumptions. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those anticipated by Dejour and described in the forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, adverse general economic conditions, operating hazards, drilling risks, inherent uncertainties in interpreting engineering and geologic data, competition, reduced availability of drilling and other well services, fluctuations in oil and gas prices and prices for drilling and other well services, government regulation and foreign political risks, fluctuations in the exchange rate between Canadian and US dollars and other currencies, as well as other risks commonly associated with the exploration and development of oil and gas properties. Additional information on these and other factors, which could affect Dejour's operations or financial results, are included in Dejour's reports on file with Canadian and United States securities regulatory authorities. We assume no obligation to update forward-looking statements should circumstances or management's estimates or opinions change unless otherwise required under securities law.
BOE Presentation: Barrel of oil equivalent amounts have been calculated using a conversion rate of six thousand cubic feet of gas to one barrel of oil. The term "BOE" may be misleading if used in isolation. A BOE conversion ratio of one barrel of oil to six mcf of gas is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the well head. Total BOEs are calculated by multiplying the daily production by the number of days in the period.
The TSX does not accept responsibility for the adequacy or accuracy of this news release.
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Dejour Energy Inc.
Robert L. Hodgkinson, Co-Chairman & CEO
598 - 999 Canada Place,
Vancouver, BC Canada V6C 3E1
Investor Relations - New York
KEYWORDS: United States North America Canada New York
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