Boston, MA – (NYSEPOST) – 03/31/2014 – Dejour Energy Inc (USA)(NYSEMKT:DEJ) disclosed on 26th March, that it has agreed to buy the adjoining oil field to its exiting property in Woodrush. The asset purchase has occurred in a region which is located next to its exiting oil field in Ft St John. The buyout of this asset will provide the oil and gas firm a 54 percent interest in production well, which at its current capacity is yielding nearly 800 mcf per day, which translates to 75 barrels of oil equivalent. In addition it will also get ownership of 74 percent interest in two other natural gas rigs, which would be further added to the production capacity over the next 30 days.
The added capacity would offer the oil and gas firm an extra production of 360 mcf per day, which would in turn translate to 60 barrels of oil equivalent per day. The new property bought out includes a 5,500 acres of lease hold which at the current stage is 65 percent developed, in addition to 96.8 percent stake in a processing plant which has production capacity of 2 mmcf per day.
Explaining the logic behind the acquisition, Dejour Energy Inc (USA)(NYSEMKT:DEJ) Chief Executive Officer Robert Hodgkinson has been quoted to have said that, “This is a strategic asset acquisition for our Company. The compressor facility and a key sales pipeline in the asset package are across the road from the Company’s main Woodrush tank battery. We currently pay a pipeline tariff to the Vendor which will be eliminated at closing as a result of the acquisition. It will also reduce monthly operating costs and increase the overall profitability.”
On the back of this announcement, the stock posted a huge 73 percent gains over the past one month, which has taken the stock nearly 10 percent shy of its 52 week high price point.