Dejour Reports Positive Cash Flow in 2013, 35% Increase in Gross Revenues, and 17% Increase in Reserves Value

20.03.2014  |  Business Wire

Dejour Energy Inc. (NYSE MKT:DEJ / TSX:DEJ), an independent oil and gas exploration and production company operating in North America’s Piceance Basin and Peace River Arch regions, today announced its 2013 financial results. The Company generated $9.3 million in gross revenues, a 35% increase over 2012, and positive cash flow from operations of $521,000 compared with a cash deficiency from operations of $2.2 million in 2012.

Other Financial and Operating Highlights are:

• A comprehensive loss for the year of $1.5 million representing an 87% reduction from the Company’s comprehensive loss of $11.8 million in 2012;
• Average production for the year of 504 boepd, a 35% increase over average production of 372 boepd for the year ended December 31, 2012;
• Average production of 620 boepd for the 4^th quarter of 2013, a 94% increase over average production of 319 boepd in the 4^th quarter of 2012;
• Year-end 2P reserves value of $115.6 million, an increase of 16.8% over the 2P reserve value of $98.9 million at December 31, 2012;
• A 10.4% reduction in operating and transportation costs from $3.8 million in 2012 to $3.4 million in 2013;
• A 12% reduction in general and administrative expenses from 2012 to 2013 (after adjusting for certain non-recurring severance payments to the former President and COO paid in 2013), and
• A successful 4-well drilling program in 2013 at Kokopelli, Colorado, a core property for the Company, which increased the number of “proven undeveloped” Williams Fork drilling locations for future development by 51% to 139 locations.
  
  

CORPORATE SUMMARY – DECEMBER 31, 2013

Note:
(1) Excluding interest and financing charges

Notes:
(1) See “Non-GAAP Financial Measures” in the Company’s Management’s Discussion and Analysis.
(2) Reserves are defined as the Company’s working interest share of gross reserves less royalty interest reserves.

About Dejour
Dejour Energy Inc. is an independent oil and natural gas exploration and production company operating projects in North America’s Piceance Basin (71,500 net acres) and Peace River Arch regions (7,500 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. 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.

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Dejour Energy Inc.
Robert L. Hodgkinson, 604-638-5050
Chairman & CEO
Facsimile: 604-638-5051
investor@dejour.com
or
Craig Allison, 914-882-0960
Investor Relations – New York
callison@dejour.com