On June 23, 2009, Dejour Enterprises Ltd. (NYSE AMEX: DEJ/TSX: DEJ) announced three transactions that significantly raised cash and diminished outstanding debt obligations – all designed to allow the Company to focus on its high growth development and exploration priorities. In the release, Mr. Robert L. Hodgkinson, Chairman & CEO stated: “We’re aligning our strategy with our greatest opportunities for growth. To date in 2009, with the closing of these transactions, we have eliminated over $9M of debt. These transactions will enable us more rapidly to realize the strength of our valuable oil and gas assets in Colorado, and British Columbia.”
The three announced transaction’s were as follows:
1) the Company has Letters of Intent in place with deposits to close the sale of a further $2.1M in minority property interests raising total property sales to C$6M.
2) Dejour has finalized an agreement with Brownstone Ventures Ltd. (TSX-V: BWN) to convert US $3.7 M of debt obigations into shares of stock with warrants and 12% notes.
3) Independent members of Dejour’s Board of Directors have negotiated an agreement with Hodgkinson Equities Corporation (HEC) to convert C$1.8 million of its debt obligation into a combination of notes and minority property interests.
Following these transactions, the Company turns its focus to its growth development and exploration priorities, which include:
— Continued concentration on strategic acquisitions and joint ventures to lever the Company’s existing US natural gas reserve/land base.
— Commencement of drilling by Laramie II LLC, Joint Venture partner of the North Rangely Piceance Basin oil project in Q3.
— High resolution 3D seismic and development drilling at the Woodrush oil project, Peace River Arch, NE British Columbia beginning in Q4.
We see the recent debt reduction and upcoming operational work plan as very positive developments for Dejour. The Company has cleaned up it’s balance sheet dramatically by converting some of its debt to equity and by replacing non-core and underperforming assets with cash and credit availability in order to develop their higher potential properties going forward.
To read the full press release click here.