Dejour Enterprises Ltd. has secured a revolving operating loan facility with a Canadian Bank initially for up to C$7,000,000. This facility, secured by Dejour’s oil & gas assets in Canada, is at interest rate of Canadian prime (currently 4.75%) plus 1%. The Company anticipates the facility will be increased as Dejour’s proven reserve base rises as early as Q4 2008.
"This attractive financing, coupled with the Company's established and growing cash flow, is expected to allow Dejour to internally finance the expansion of its reserve base with relatively low risk development drilling and evaluate the potential of its recent land acquisitions in the Peace River Arch area," Charles Dove, President, Dejour Energy (Alberta) commented Friday.
Initially, Dejour will drill as many as three development wells (100%) offsetting the Woodrush oil discovery in British Columbia plus a fourth well to test a potential new pool in the immediate area. Plans are also being finalized for additional wells to further develop the Company's other oil and gas reserves in Alberta and B.C. during the winter 2008-09 drill season.
Included in plans for the coming winter is the initiation of data gathering and design of a waterflood program to enhance oil recoveries for the B.C. oil pool. The current Q2 Proven and Probable reserves for the primary recoveries for the oil discovery have been independently evaluated at $38,986,000 using a 10% NPV discount. Similar oil pools in the area have seen up to 100% increase in recoveries following successful implementation of a waterflood.
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