DEJOUR ENTERPRISES LTD.: Amex: DEJ/TSX-V: DEJ
VANCOUVER, Jan. 21 /CNW/ - Dejour Enterprises Ltd. ("Dejour")
(Amex: DEJ/TSX-V: DEJ)
Peace River Arch
Dejour's winter 07-08 exploration is meeting with exceptional results to
date. As of January 21, Dejour has drilled and cased 5 of its first 5 new
project exploratory wells (average working interest 90%) and will spud its 6th
new project exploratory well within two weeks (90% W.I.).
The first of these exploratory wells has been completed and flow tested.
Gas flow rates levelled at 3 mmcf/day at the end of the 24 hr test. The well
also produced a total of 152 bbls of light oil over the test period.
Completion programs for the remainder are being finalized and results will be
forthcoming as these programs are implemented throughout January and February.
Dejour has reached TD on a third well (Drake 94H1) at its previously
mentioned Drake Field extension with a 4th, 5th and 6th well to follow prior
to the end of February. Initial log indications are that the well encountered
the target sand with a gas show and casing has been ordered. Dejour has a 100%
WI in these wells. Drake wells No.4, No.5 and No.6 will test the Notekewin and
several deeper zones identified by 3D seismic. The initial two wells drilled
at the end of last winters drilling season have now been completed with small
CO2 fracture stimulations.
Initial flow rates following the stimulation was (greater than) 2 mmcf
per day natural gas from each of these wells. The Company, utilizing good
engineering practice, expects to produce these two wells at (greater
than) 2.0 mmcf/day combined on completion of the tie-in. Flow line rights of
way have been cut and lines are being laid for tie in prior to the end of Q1.
Dejour also expects its non-operated 30% Saddle Hills discovery to be
tied in and an offset well drilled during Q1. Two zones were tested at this
location, with combined rates (greater than)1.5mmcf/day.
Lastly, Dejour is working plans to tie in as many of its new discovery
wells as possible prior to break up. Reservoir engineering calculations on
these properties will be forthcoming prior to the end of February. Further
development will follow.
Dejour continues to target production rates (greater than) 10mmcfe/d
(million cubic feet equivalent per day) natural gas to its WI interest from
these operations by the end of Q1-08.
BOEs (or 'McfEs' 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 reports that its 25% owned North Barcus Creek wells (No.1-12 and
No.2-12) are still returning frac fluid, natural gas and gas condensate
through production tubing with increasing pressures. With 25-35% of frac
fluids remaining to be retrieved, the NBC No.1-12 is currently shut in pending
pressure build up. The NBC No.2-12, however, has production tested over 800mcf
gas and 25-50 barrels of gas condensate per day from a 24 hour test. Reservoir
pressure bombs have now been installed. Testing will continue as the wells
clean out and pressure equalize. Over 800 barrels of gas condensate (a very
high gravity light oil), extracted from these wells is being processed for
trucking to local sales points.
Dejour is encouraged by the strengthening trend of these daily results,
despite a very harsh seasonal operating environment. Dejour expects to have
its engineers determine initial proven reserves at North Barcus Creek
following completion of testing, during Q1-08.
Charles Dove, P. Geoph. is the qualified person for this report.
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), 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: