Dejour Reports Increased Nine Month 2014 Production and Revenue with Positive Cash Flow

Kokopelli Drilling Campaign Continues as Planned

VANCOUVER, British Columbia–(BUSINESS WIRE)–Dejour Energy Inc. (NYSE MKT: DEJ / TSX: DEJ) (“Dejour” or the “Company”), an independent oil and gas exploration and production company operating in North America’s Piceance Basin and Peace River Arch regions, today announced its financial results for the three and nine month periods ended September 30, 2014.

Other Key Financial and Operating Highlights are:

• Increased production by 7% to 496 BOE/d for the nine months ended September 30, 2014 from production of 465 BOE/d for the comparative period in 2013;
• Increased gross revenues by 10% from $7.0 million for the nine months ended September 30, 2013 to $7.6 million for the nine months ended September 30, 2014;
• Closed the acquisition of an additional 24% working interest in the Drake/Woodrush oilfield in Northeastern B.C. to increase the Company’s working interest to 99%. As consideration for the purchase, the Company issued 9,600,000 common shares at a price of $0.202 per share for total share consideration of $1,939,000; and
• Completed a private placement of 6,000,000 units at US$0.25 per unit. Each unit consists of one common share and one common share purchase warrant. Each whole warrant entitles the holder to acquire one additional common share of the Company at US$0.35 per common share until December 31, 2015. Gross proceeds raised were $1,640,000 (US$1,500,000).

CORPORATE SUMMARY – SEPTEMBER 30, 2014

Notes:
(1) Excluding interest and financing charges
(2) Increase due to planned annual maintenance at Woodrush NE BC, two work overs, a new pump jack and non-recurring compressor start up and repair costs associated with the Q1-2014 acquired properties at Hunter (adjacent to Woodrush), and higher water hauling costs for the natural gas wells at Kokopelli

Notes:
(1) It is a non-GAAP measure and calculated by adding back settlement of decommissioning liabilities and change in non-cash operating working capital to cash provided by operating activities. See “Non-GAAP Measure” below for details.

SUPPLEMENTAL FINANCIAL INFORMATION – NON-GAAP MEASURE

The NYSE MKT (“the Exchange”), in a letter to the Company dated August 4, 2014, expressed that, in its opinion, Dejour has made a reasonable demonstration of its ability to regain compliance with Section 1003(a)(iv) of the Exchange’s Company Guide, which addresses a listing Company’s ability to continue operations and/or meet its obligations as they occur. The Exchange, in its prudence, has again granted the Company an extension to regain total compliance with Section 1003(a) (iv) until November 30, 2014. During this period, the Company will submit updated “Plans of Compliance” no later than at each quarter completion concurrent with the Company’s appropriate filing with the Securities and Exchange Commission. Failure to make progress consistent with the ‘Plan of Compliance’ or to regain compliance with the listing standards by the end of the extension period could result in the Company being delisted from the NYSE MKT LLC.

About Dejour
Dejour Energy Inc. is an independent oil and natural gas exploration and production company operating projects in North America’s Piceance Basin (43,505 net acres) and Peace River Arch regions (17,000 net acres). Dejour maintains offices in Denver, USA, Calgary and Vancouver, Canada. The company is publicly traded on the New York Stock Exchange Amex (NYSE MKT: DEJ) and Toronto Stock Exchange (TSX: DEJ).

[expand title=”Advisories & Contact”]Disclosures Regarding Reserve Estimates: The reserve estimates assume available funding for development of the properties. Disclosed values do not necessarily represent fair market value. A conversion ratio for Cubic Feet Equivalent of gas of 6 thousand cubic feet to 1 bbl is used in the above tables and is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Prospective Resources are defined as “those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. Prospective Resources are further subdivided in accordance with the level of certainty associated with recoverable estimates assuming their discovery and development and may be sub-classified based on project maturity”. There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources. These estimates represent the likely size of the resource, if present, and have not been adjusted for risk of failure.

Statements Regarding Forward-Looking Information: This news release contains statements about oil and gas production and operating activities that may constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities legislation as they involve the implied assessment that the resources described can be profitably produced in the future, based on certain estimates and assumptions. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those anticipated by Dejour and described in the forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, adverse general economic conditions, operating hazards, drilling risks, inherent uncertainties in interpreting engineering and geologic data, competition, reduced availability of drilling and other well services, fluctuations in oil and gas prices and prices for drilling and other well services, government regulation and foreign political risks, fluctuations in the exchange rate between Canadian and US dollars and other currencies, as well as other risks commonly associated with the exploration and development of oil and gas properties. Additional information on these and other factors, which could affect Dejour’s operations or financial results, are included in Dejour’s reports on file with Canadian and United States securities regulatory authorities. Other risks include the Company’s ongoing review by NYSE MKT (“the Exchange”) to ensure the Company continues to regain compliance with Section 100 3(a)(iv) of the Company Guide which addresses a Company’s ability to operate as a going concern. We assume no obligation to update forward-looking statements should circumstances or management’s estimates or opinions change unless otherwise required under securities law.

The TSX does not accept responsibility for the adequacy or accuracy of this news release.

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