Dejour Energy Inc. (NYSE MKT: DEJ/TSX: DEJ), an independent oil and natural gas exploration and production company operating in North America's Piceance Basin and Peace River Arch regions, has renewed its $3.5 million credit facility with the Canadian Western Bank. This is a revolving Canadian chartered bank demand loan with an interest rate at Prime + 1%. The next review will occur late in the second quarter of 2014.
Currently, Dejour has drawn $2.8 million against this facility. The facility possesses an acquisition provision that may be activated should the company make an acquisition. Absent activation of this provision in the first quarter of 2104, the facility limit will reduce by approximately 9%.
The company anticipates that it would pay down from excess cash flow an orderly $100k/month reduction of principal based on its current position, beginning later in the second quarter of 2014, should the limit not be increased due to an acquisition.