History
Dejour, now DXI Energy, funded its Colorado and British Columbia oil projects through share sales and a land farmout, then lost a major Colorado funding deal in early 2014.
2009-2012: Raising money and proving up oil
Dejour Energy, as it was then known, began this record by raising money. In December 2009 it agreed to sell 10.8 million shares at US$0.30 each to institutional investors, about US$3.2 million, plus warrants (rights to buy more shares) for up to 8.1 million shares at US$0.40. The money was for developing its properties and working capital, and it diluted existing shareholders.
The record then goes quiet until 2011, when the company reported that a waterflood (injecting water to push out more oil) at its 75%-owned Woodrush project in northeast British Columbia was working. The gas-to-oil ratio fell from 2,700 to under 900, and it expected output to rise from an average 180 barrels a day to about 400 by July. A preliminary consultant study supported over 1.3 million recoverable barrels, though the company said this was not a formal reserve estimate.
In December 2012 it sold and farmed out about 7,450 acres of western Piceance Basin land in Colorado to an unnamed large NYSE-listed producer. Dejour received an undisclosed cash payment and a promise that the partner would carry the cost of three wells, keeping a 20% interest in over 5,100 acres.
2013-2014: A funding deal falls through
In December 2013 Dejour signed a non-binding letter of intent with a private Singapore-based company, SECO. SECO would invest up to $27.5 million over 2014 and 2015 to earn 85% of the Colorado properties, mainly Kokopelli, with about US$4.5 million going to Dejour. In February 2014 the letter lapsed; the board did not approve the deal and the company had no obligation to proceed.
In March 2014 year-end reserve reports showed proved plus probable reserves of 6,631,400 barrels of light oil and natural gas liquids and 134,210.3 million cubic feet of gas, valued before tax at $115.554 million, almost all at Kokopelli. Because the Canadian estimate was revised, Dejour reversed a C$3.9 million impairment booked in the third quarter. That lifted shareholder equity to more than twice the US$4.0 million NYSE MKT minimum, easing a listing concern. As of March 19, 2014, the company had no pending transaction and was still working out how to fund its Colorado development.
Written from the 6 story beats below (2009 to 19 Mar 2014), which come from the company's own announcements and filings.