Amex: DEJ/TSX-V: DEJ
VANCOUVER, Feb. 11 /CNW/ - Dejour announces the Company has now drilled
or participated in drilling 13 wells on 9 of its 14 project areas, since
inception of exploration activity in the Peace River Arch in late 2006. Six
wells have tested gas and one has tested gas and oil. Three are recent wells
for which completion and evaluation operations are underway. There are three
more wells to be drilled to complete Dejour's winter-07/08 program in the
Peace River Arch area.
These positive results position Dejour to target initial daily production
rates greater than 10,000,000 cubic feet of natural gas equivalent per day
(MMcfGE/d) from multiple operations in this area. Pipeline construction is
well underway in the Drake B.C. area. National Instrument No. 51-101
independent reservoir engineering reports will be forthcoming prior to the end
of March 2008, as required to assign reserves and values to year end 2007. A
second report will be created at the end of the current exploration and
development program to update these results. As of today's date NYMEX Henry's
Hub Natural Gas has risen to $8.59 (US/MMBtu).
Chairman & CEO Robert L. Hodgkinson states, "the Peace River Arch
projects have been executed very efficiently and effectively. The well logs
and flow rates are better than anticipated and show potential for considerable
economic success. The combined production from these wells will place the
company in an excellent cash positive position and provide the financial means
to fund present operations. Further, our discoveries in this area strongly
support Dejour's program of allocating capital to the exploration and
development of North American oil and gas properties that are highly
prospective for significant discovery, during this period of market
PEACE RIVER ARCH CANADA - DRAKE PROSPECT
Dejour has now flow tested both its third and 4th wells, both 100% owned.
Well No. 3 flowed over 500,000 cubic feet of natural gas per day from the
'Notekewin' sands with porosities as high as 24%. The No. 4 well flowed over
650,000 cubic feet of natural gas per day. Neither of these wells has been
subjected to frac due to strong natural rates of gas flow. Both wells will be
placed on production shortly.
Well No. 5 has now reached total depth of 3700'. The primary objective on
this location is the seismically defined 'Halfway' sand. Well logs indicate
high porosity sand with good gas show at this interval. In addition up-hole
gas shows have all contributed to the decision to immediately case this well
for production testing. This will be complete by early next week. The drill
rig will then proceed to the No. 6 location to again test multiple zones which
show potential on 3D seismic coverage analogous to the No. 5 well.
The No. 6 well will conclude the Drake exploration and development
drilling program for the 2007-08 winter drilling season. Plans are to place
these 6 wells on production prior to breakup, with the gas moving through
available pipelines running both east and west from this project area. Final
production rates will be aggregated at that time. Dejour estimates initial
production (IP) rates of at least 6 million cubic feet of natural per day from
Dejour has at least 4 additional drill sites on these 100% owned lands at
Drake for future development. The Company is exploring the possibilities of
further significantly greater exposure to natural gas productivity in this
OTHER PEACE RIVER ARCH CANADA PROSPECTS
Dejour spuds its sixth and final exploration well of the season this
month to test a prominent channel sand of a type known to be prolific in the
area. The cumulative results of this exploration program will be forthcoming
as results are available. To date, one of the new discoveries has tested over
3,000,000 cubic feet of natural gas per day with over 150 barrels of light oil
(Dejour 100%). Two additional exploratory wells show strong indications of
hydrocarbons on the logs and are currently being evaluated for production.
Rates will be published when available.
Lastly, Dejour's, third party operated 30% owned Saddle Hills discovery
is now being placed on production (two zones tested greater than 1,600,000
cubic feet of natural gas), with an offset well to commence drilling. The
Company has 5700 acres associated with this play and currently preparing to
record a seismic program to assist in future development in 2008.
PICEANCE & UINTA BASIN, USA UPDATE
Dejour continues to concentrate on its 22% average ownership in over
300,000 acres of oil and gas properties in the US Piceance and Uinta Basins,
where two drilling successes (third party operated) are being prepared for
production early in Q2-08. National Instrument No. 51-101 independent
reservoir engineering reports will be forthcoming by mid March 2008.
Hodgkinson states further, "it is the Company's near term intention to
become increasingly proactive in the future development of these highly
prospective basin centred gas resources, known to be one of the largest
concentrations of natural gas in North America. This is where industry is
expected to spend over US $25B drilling over 40,000 wells in the next 5 years.
Dejour has positioned itself in the right place at the right time."
Dejour also holds:
a. A greater than 33.5% interest in over one million acres of
properties, prospective for the discovery of uranium in Canada's
Athabasca Basin, through carried and royalty property interests and
controlling equity interest in Saskatoon based, publicly traded Titan
Uranium Inc. These properties are currently the subject of
substantial exploration joint ventures, funded externally by
internationally mining concerns but operated by Titan, and
b. A 35% working interest in a natural gas play covering 7500 acres of
very prospective oil and gas leases on the downthrown side of the
Tinsley salt dome in Mississippi, resulting from the successful
reinterpretation of extensive proprietary 3D seismic data available
to the Company.
Charles Dove, P. Geophysics, is the qualified person for this report.
BOEs (or 'MMcfGEs' or other applicable units of equivalency) may be
misleading, particularly if used in isolation. A BOE conversion ratio of
6 Mcf: 1 bbl (or 'An McfGE conversion ratio of 1 bbl: 6 Mcf') is based on an
energy equivalency conversion method primarily applicable at the burner tip
and does not represent a value equivalency at the wellhead.
Dejour Enterprises Ltd. is a micro cap Canadian company creating real
shareholder value through a balance of exploration/development,
production/development and monetization of strategic North American energy
properties - including oil, natural gas and uranium.
The Company is listed on the Amex (DEJ), TSX Venture Exchange (DEJ.V),
and Frankfurt (D5R). Dejour is a reporting issuer to the SEC. Refer to
www.dejour.com for company details or contact the Office of Investor Relations
Statements Regarding Forward-Looking Information: Some statements
contained in this news release are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Investors are
cautioned that forward-looking statements are inherently uncertain and involve
risks and uncertainties that could cause actual results to differ materially,
including comments regarding the expectation that the offering will be
completed consistent with the terms outlined above and use of proceeds from
this transaction. Actual results may differ materially from those presented.
Factors that could cause results to differ materially include fluctuations in
oil, gas and uranium prices, changes in U.S. and Canadian securities markets
and failure to receive regulatory approvals. Dejour assumes no obligation to
update this information. There can be no assurance that future developments
affecting the Company will be those anticipated by management. Please refer to
the discussion of risk factors in our Form 20-F for 2006, as amended.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this news release.
Robert L. Hodgkinson, Chairman & CEO
DEJOUR ENTERPRISES LTD.
For further information:
For further information: Robert L. Hodgkinson, Chairman & CEO, DEJOUR
ENTERPRISES LTD., Suite 1100-808 West Hastings Street, Vancouver, BC, Canada,
V6C 2X4, Phone: (604) 638-5050, Facsimile: (604) 638-5051, Email: