Steve Ralston, CFA
Dejour (DEJ) announced the formation of a joint venture for the exploration and production of deep oil on its Woodrush property. Importantly for Dejour, the yet-to-be-named partner will fund most of the exploration costs, along with additional land purchases. This is an important step for Dejour, which outlines the structure of future JVs for the company at Gibson Gulch, and reduces the risk level for the financing of exploration costs.
The company also presented an update on its properties earlier this month, which is available on the company’s web site. On Monday, we will comment and go into detail on the new information gleaned from this presentation.
We reiterate our Outperform rating based upon the attractive valuation level of the stock and the company’s improving production and exploration profile.
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