Dejour Energy Inc. (NYSE MKT: DEJ / TSX: DEJ) (“Dejour”
or the “Company”), an independent oil and gas exploration and
production company operating in North America’s Piceance Basin and
Peace River Arch regions, today announced its financial results for
the three and twelve month periods ended December 31, 2014.
2014 Key Financial and Operating Highlights are:
- Achieved a 2014 reserve replacement
ratio of 3.8 times in Canada;
- Completed two equity financings in the
year.
- 7,000,000 units at $0.11 per common
share in January 2014. Gross proceeds raised were $770,000;
- 6,000,000 units at US$0.25 per unit in
August 2014. Each unit consists of one common share and one common
share purchase warrant. Each whole warrant entitles the holder to
acquire one additional common share of the Company at US$0.35 per
common share until December 31, 2015. Gross proceeds raised were
$1,640,000 (US$1,500,000);
- Retired the related loan facility of
$3.5 million due to a Canadian institutional lender;
- Completed the acquisition of certain
natural gas producing assets and related processing facilities
adjacent to the Company’s existing Woodrush oilfield at Ft. St.
John, British Columbia, resulting in the acquisition of an
additional net 400 mcf/d and 9,600 net acres (44% developed);
- Closed the acquisition of an additional
24% working interest in the Drake/Woodrush oilfield in Northeastern
B.C. to increase its working interest to 99%. As consideration for
the purchase, the Company issued 9,600,000 common shares at a price
of $0.202 per share for total share consideration of
$1,939,000;
- Closed the sale of 65% of the Company’s
working interest in the initial four wells drilled in 2013 at its
Kokopelli project in Colorado, together with certain related
production facilities and 1,000 of its 1,520 net acres, for
$4,136,000 (US$3,876,000) cash maintaining a 25% working interest
in a highly successful US$16.0 million drilling program commenced
in Q3 2014 (7 Williams Fork, 1 Mancos, 1 PWD), funded by the
Purchaser of the assets; with completion anticipated to commence in
Q2 2015.
- Successfully drilled two new wells at
the Company’s Woodrush property, north of Fort St. John, British
Columbia. The initial well is a new natural gas discovery in the
Gething geological formation while the second well is a development
well drilled into the extreme south end of the Company’s Woodrush
oil pool. Subsequent to year-end, the Company reported initial
production of 350 BOE/d from these two wells on January 26, 2015.
The Company owns a 99% working interest in both wells.
CORPORATE SUMMARY – THREE AND TWELVE MONTHS ENDED DECEMBER
31, 2014
OPERATIONS
Three months endedDecember
31,
Twelve months endedDecember
31,
2014 2013 Change
2014
2013 Change
Production Oil and
natural gas liquids (bbls/d) 162 167 -3% 182 215 -15% Natural gas
(mcf/d) 891 2,714 -67% 1,602 1,733 -8% Combined (BOE/d) 310 620
-50% 449 504 -11%
Realized sales prices Oil
and natural gas liquids ($/bbl) 72.29 80.17 -10% 87.99 86.21 2%
Natural gas ($/mcf) 3.87 4.55 -15% 5.45 4.06 34%
Operating expenses(1)
Oil operations ($/bbl) 32.01
26.24 22% 27.65 26.75 3% Natural gas operations ($/mcf) 4.37 2.11
107% 3.86 2.06 87%
Operating netback Oil
operations ($/bbl) 28.93 37.31 -22% 45.57 42.65 7% Natural gas
operations ($/BOE) -4.76 8.91 -153% 4.39 7.40 -41%
General and administrative
expenses ($/BOE)(2) 39.19 14.98 162% 21.31 18.39 16%
Notes:(1) Increase due to planned annual maintenance at Woodrush
NE BC, two work overs, a new pump jack and non-recurring compressor
start up and repair costs associated with the Q1-2014 acquired
properties at Hunter (adjacent to Woodrush), and higher contractual
pipeline transportation costs in 2014 in Canada.(2) Reduced
production in Q4 2014 from the sale of 65% of the Company’s working
interest at Kokopelli resulted in higher per BOE G&A costs in
Q4 2014 compared with Q4 2013.
FINANCIAL (CA$ thousands, except per share)
Three months endedDecember
31,
Twelve months endedDecember
31,
2014 2013 Change
2014
2013 Change
Revenue 1,410 2,354 -40% 9,049 9,317 -3% Royalties 196 501 -61%
1,488 1,811 -18%
Cash flow (1) -705 1 -70600% -100 522 -119% Cash flow per share
(basic) -0.00 0.00 0% -0.00 0.00 0% Cash flow per share (diluted)
-0.00 0.00 0% -0.00 0.00 0%
Net income (loss) -3,331 4,350 -177% -7,203 -2,577
180% Basic ($/common share) -0.02 0.03 -163% -0.04 -0.02 135%
Diluted ($/common share) -0.02 0.02 -182% -0.04 -0.02 135%
Capital expenditures, net
of dispositions 2,371 -87 2825% 3,834 2,041 88%
Weighted average common shares
outstanding (thousands)
Basic 182,402 148,916 22% 177,124 148,916 19% Diluted 226,936
195,883 16% 229,230 195,883 17%
Bank debt, net of working capital
4,480 8,908 -50%
Notes:(1) It is a non-GAAP measure and calculated by adding back
settlement of decommissioning liabilities and change in operating
working capital to cash flows from (used in) operating activities.
See “Non-GAAP Measure” below for details.
SUPPLEMENTAL FINANCIAL INFORMATION – NON-GAAP MEASURE
Three months endedDecember 31,
Twelve months endedDecember 31,
(CA$ thousands) 2014 2013 2014 2013 Cash flows
from (used in) operating activities (127) 388 (581) 962 Change in
operating working capital (578) (387) 481 (440) Cash flow (705) 1
(100) 522
The NYSE MKT (“the Exchange”), in a letter to the Company dated
December 11, 2014, expressed that, in its opinion, Dejour has made
a reasonable demonstration of its ability to regain compliance with
Section 1003(a)(iv) of the Exchange’s Company Guide, which
addresses a listing Company’s ability to continue operations and/or
meet its obligations as they occur. The Exchange, in its prudence,
has again granted the Company an extension to regain total
compliance with Section 1003(a) (iv) by May 22, 2015. During this
period, the Company will submit updated “Plans of Compliance” no
later than at each quarter completion concurrent with the Company’s
appropriate filing with the Securities and Exchange Commission. Any
issuance of additional shares by the Company during this period
will require the prior approval of a management committee of the
Exchange. Failure to make progress consistent with the ‘Plan of
Compliance’ or to regain compliance with the listing standards by
the end of the extension period could result in the Company being
delisted from the NYSE MKT LLC.
About DejourDejour Energy
Inc. is an independent oil and natural gas exploration and
production company operating projects in North America’s Piceance
Basin (43,500 net acres) and Peace River Arch regions (16,000 net
acres). Dejour maintains offices in Denver, USA, Calgary and
Vancouver, Canada. The company is publicly traded on the New York
Stock Exchange Amex (NYSE MKT: DEJ) and Toronto Stock Exchange
(TSX: DEJ).
Disclosures Regarding Reserve Estimates: The reserve
estimates assume available funding for development of the
properties. Disclosed values do not necessarily represent fair
market value. A conversion ratio for Cubic Feet Equivalent of gas
of 6 thousand cubic feet to 1 bbl is used in the above tables and
is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value
equivalency at the wellhead. Prospective Resources are defined as
“those quantities of petroleum estimated, as of a given date, to be
potentially recoverable from undiscovered accumulations by
application of future development projects. Prospective resources
have both an associated chance of discovery and a chance of
development. Prospective Resources are further subdivided in
accordance with the level of certainty associated with recoverable
estimates assuming their discovery and development and may be
sub-classified based on project maturity”. There is no certainty
that any portion of the resources will be discovered. If
discovered, there is no certainty that it will be commercially
viable to produce any portion of the resources. These estimates
represent the likely size of the resource, if present, and have not
been adjusted for risk of failure.
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. Other risks include the
Company’s ongoing review by NYSE MKT (“the Exchange”) to ensure the
Company continues to regain compliance with Section 100 3(a)(iv) of
the Company Guide which addresses a Company’s ability to operate as
a going concern. We assume no obligation to update forward-looking
statements should circumstances or management's estimates or
opinions change unless otherwise required under securities law.
The TSX does not accept responsibility for the adequacy or
accuracy of this news release.
Follow Dejour Energy’s latest developments on: Facebook
http://facebook.com/dejourenergy and Twitter @dejourenergy
Dejour Energy Inc.Robert L. Hodgkinson,
604-638-5050Chairman & CEOFacsimile:
604-638-5051investor@dejour.comorCraig Allison,
914-882-0960Investor Relations – New Yorkcallison@dejour.com
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