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, plans to acquire a further 24% working interest in its legacy Woodrush oil and gas production project.
The acquired 24% interest encompasses production from three oil wells, six gas wells, sour gas processing facilities, and 8,000 net acres prospective for additional reserve growth and productivity. As of the first quarter of 2014, the subject interests to be acquired accounted for net production of 70 BOE of daily production (70% oil).
This transaction has an effective date of June 1, and is expected to close on or before July 3. When completed, Dejour will own a 99% working interest in these legacy Woodrush properties. The purchase price is $1.94 million, payable by the issuance of 9,600,000 shares of the company’s common stock at a price of Cdn. $0.202 per share.