Dejour is pleased to report the results of operations to shareholders for the second quarter of 2013.
During the quarter we:
1. Completed the drilling of three new wells to the Williams Fork formulation at Kokopelli in the eastern portion of the Piceance Basin of Colorado;
2. Increased production at the Drake/Woodrush Halfway “E” Pool north of Fort St. John, British Columbia to an average of 422 BOEPD consisting of 282 BOPD of oil and 843 Mcf/d of gas. Current quarter’s oil production (BOPD) exceeded Q1 2012 production by 31%, a result of better operating efficiency at Drake/Woodrush and achieving “peak production” from the existing oil pool through implementation of a water flood;
3. Closed a $3.5 million loan facility with a Canadian institutional lender and applied $1.65 million of the net proceeds to repay an amount owing to the Company’s Canadian bank.
Revenue increased 43% from $1.8 million in Q2 2012 to $2.5 million for the three months ended June 30, 2013. This increase was primarily attributable to higher combined average realized prices and an increase in oil production during the current quarter compared with Q2 2012. The Company incurred a loss of $1.1 million during Q2 2013 of which $978,000 was represented by non-cash expense amounts such as amortization, depletion, and stock based compensation.
During Q2 2013, the Company generated $522,000 in cash flow from operating activities compared with a deficiency of $727,000 for the comparable period ended June 30, 2012. For the six months ended June 30, 2013, cash flow from operating activities was $695,000 compared with a deficiency of $2,362,000 for the six months ended June 30, 2012.
Subsequent to June 30, 2013, the four wells drilled and completed in a joint venture with a U.S. drilling fund at Kokopelli were fracked and turned into the gas sales line. Cumulative IP rates will be made available for all four wells when the wells have substantially cleaned up.