Dejour's management team has executed a series of transactions designed to enhance the Company's balance sheet.
Dejour successfully realized an asset sale of C$3 million in cash and C$0.9 million in escrow to date, with further minority sales to close by the end of June. The Company divested minority interests and one non-core property -- the subject of excessive Alberta government royalty rates -- to provide capital for exploration in 2009 that will deliver increased future value to shareholders. These divestitures will virtually eliminate Dejour’s bank debt, while leaving available credit facility. Furthermore, Canadian operating and overhead costs have been reduced by more than 30%.
"With world oil prices over US $70 per barrel, we believe this is the time to develop our best oil resources," explained Mr. Hodgkinson. "Dejour is focused on advancing its most lucrative and promising assets, in anticipation of a solid recovery of energy prices."
"The realignment of our producing portfolio and the reduction of debt enables Dejour to proceed with plans for a multi-well drill program of the Woodrush oil pool, and to take advantage of the royalty-free production holiday in north east BC," explained Hal Blacker, President & COO. "We anticipate this development program will allow Dejour to more than replace the proven reserves sold this year, at a cost less than C$10 per BOE —and at the same time enjoy a substantial netback increase."
Dejour has continually demonstrated the ability to anticipate and react to market opportunities. Past acquisitions and divestitures have increased shareholder value and improved the Company's strategic position. This is another period of opportunity.
In other matters, Dejour accepts the resignation of Archibald J. Nesbitt from its Board of Directors, for personal reasons. Mr. Nesbitt, who has been with Dejour since its reorganization in late 2004, has been an active contributor both appreciated and respected by his fellow board members. We wish Mr. Nesbitt every success in his future endeavors.
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