Dallas, Texas 03/05/2014 (FINANCIALSTRENDS) – Dejour Energy Inc (NYSEMKT:DEJ) is into exploration and production of natural gas and oil. The company was planning for a joint venture partnership with another energy company SECO. To facilitate this plan the company had earlier extended letter of intent on Colorado assets. However, as per the latest information the Letter Of Intent has lapsed. The transaction was not approved by company’s board of directors and Dejour Energy Inc (USA) (NYSEMKT:DEJ) has no obligation to continue further.
Dejour Energy Plans for Phase 2 – Kokopelli project.
Currently, all the four wells of Phase 1 Kokopelli project are in production. As part of Phase 2 Kokopelli project the main focus will be on drilling and seven Williams Fork vertical wells and one Niobrara wells. Dejour Energy (NYSE MKT:DEJ) has announced a joint venture with Singapore based company and from them they expect to invest around $27.5 million as funding for Phase 2 of Detour’s Kokopelli project over two years.
Dejour Energy Ratings upgraded.
The company’s rating was upgraded to “Out Perform” anticipating the positive revision of the reserve estimates and also the announced joint venture with a Singapore base private company. The natural gas prices was above $3.00 during 2013 and with severe weather in January, 2014 the rates touched above $5.00. Observing this trend, the gas producing company’s are expecting a positive revision of the reverse estimate. The updated reserve estimates is expected to increase the value of Net Proved Reserves.
Dejour Energy’s existing $3.5 million credit facility was renewed by Canadian Western Bank during the month of December. Also there is plan to reduce G&A expenses by 40% as part of cost reduction.
The company’s compliance plan was accepted by NYSE MKT exchange and extension has been granted for fulfillment.