Canadian Bank Renews Dejour Energy Facility
Dejour Energy announced that it renewed its $3.5 million credit facility with Canadian Western Bank.
This is a revolving Canadian chartered bank demand loan with an interest rate at Prime + 1 percent. The next review will occur in late Q2/14.
Currently, Dejour has drawn $2.8MM against this facility. The facility possesses an “acquisition provision” that may be activated should the company make an acquisition. Absent activation of this provision, the facility limit will reduce by approximately 9%. The company anticipates that it would pay down from excess cash-flow $100,000/month reduction of principal based on its current position, beginning later Q2/14, should the limit not be increased due to an acquisition.
“This renewal further demonstrates our co-operative relationship with the Canadian bank. We have in place a facility to support planned corporate initiatives to both increase the efficiency of our NE BC operations and potentially enhance our core reserve base,” Robert L. Hodgkinson, Dejour’s CEO commented.
Dejour Energy is an independent oil and natural gas exploration and production company operating in North America’s Piceance Basin and Peace River Arch regions.