Dejour Energy Inc., an independent oil and gas exploration and production company operating in North America s Piceance Basin and Peace River Arch regions, today announced that it has entered into subscription agreements for an equity financing that will result in gross proceeds of US$1.5 million with three institutional investors to support the Company s Q3 2014 Woodrush development plan. This program encompasses reworking several existing wells to enhance productivity and involves drilling additional wells in an effort to expand production and associated reserves.
As previously reported, Dejour acquired certain natural gas producing assets and related processing facilities adjacent to its Woodrush oilfield 120 km. north of Ft. St. John, B.C. on March 26, 2014 and closed on its acquisition of an additional 24% WI in the Company s legacy Woodrush operation on July 3, 2014. As of the end of the second quarter, the field produced an average of 475 boe/d.
In connection with the offering, the Company plans to issue 6,000,000 units at a price of US $0.25 per unit. Each unit consists of one common share of the Company and one full warrant to purchase one common share. Each warrant will be exercisable to purchase one common share at an exercise price of US$ 0.35 per share until December 31, 2015, subject to early acceleration. Completion of the offering, which is expected to occur on or about August 15, 2014, is subject to satisfaction of customary closing conditions including, but not limited to, the approval of the TSX and the NYSE MKT.