Amex: DEJ/TSX-V: DEJ
VANCOUVER, March 6 /CNW/ - Dejour is in the final stages of completion of
its most rewarding drilling program to date in Canada's Peace River Arch,
targeting (greater than) 10,000,000 cubic feet natural gas equivalent per day
production from current operations in this area, as North American natural gas
prices rise to new cycle highs. In total, eleven (11) wells are being prepared
Dejour has successfully drilled and cased the No.6 well at Drake.
Production testing at this location indicates this well to be a significant
producer analogous to the No.5 well which tested 1,600,000 cubic feet of
natural gas equivalent per day, without stimulation. Permanent facilities are
now being established to have all six of the Drake location wells on line
before the end of March. Dejour owns between a 92% and 100% interest in all
six wells and the adjacent lands. The Company plans greater exposure to
hydrocarbon productivity in this area.
Dejour has also cased, perforated and is currently flow testing over
500,000 cubic feet of natural gas per day without stimulation from its latest
95% owned exploration test at Cecil, Alberta. A second zone in this well is
now being tested.
Additionally, a 40% owned third party operated exploration test at
Manning, Alberta has reached total depth and has been cased for production
testing. This completes the exploration program in the Peace River Arch for
this drilling season, with at least 4 discoveries on six separate prospects.
Cumulative results of this very successful exploration program are close to
At Dejour's third party operated 30% owned Saddle Hills discovery, now
being placed on production (two zones tested (greater than) 1,600,000 cubic
feet of natural gas), a first offset well is currently drilling, target depth
expected to be reached this week. Concurrently, Dejour is preparing to record
a seismic program over the 5700 acres of land covering this discovery to
pinpoint the prime locations for future development.
Peace River Arch Program Summary
Since inception of exploration in the winter of 2006-07, Dejour has
drilled 9 separate prospects in the Peace River Arch region of NW Alberta/NE
BC. At least five are confirmed discoveries, two are still being evaluated,
two are considered uneconomic. To date a total of 11 wells are being prepared
for production. 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%).
The six Drake area wells (Dejour 92-100%) are expected to produce at rates in
excess of 6,000,000 cubic feet of gas equivalent with ongoing development. In
addition to the Saddle Hills development, two additional wells have also been
cased and are currently being evaluated for production.
Dejour has, in addition to undrilled locations offsetting discoveries,
two other projects still being evaluated for commerciality and five untested
exploration prospects remaining in drilling inventory for the winter of
A National Instrument No.51-101 independent reservoir engineering report
for all Dejour's Peace River Arch interests is currently being prepared by GLJ
Petroleum Consultants, Calgary Alberta as required to assign reserves and
values to year end 2007.
The company feels that the reserves discovered during the 2007-08
exploration and development program will exceed the minimum reserve
requirement for upgrading the Company's listing to the TSX.
Charles Dove, P. Geophysics, is the qualified person for this report.
NYMEX Henry's Hub Natural Gas price continues to rise and today is
BOEs (or 'MmcfEs' 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 CEO Bob Hodgkinson has provided a summary of these operations on
the Dejour website. The Company has received an updated valuation report from
Khandaker Partners & Co., a NYC based research firm. This report is also
available on the Dejour website at www.dejour.com/khandaker.htm
Dejour Enterprises Ltd. is a micro cap Canadian company creating real
shareholder value through a balance of exploration, development, production
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.
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: