Dejour
Adds Two New Wells at Woodrush Project
DEJOUR ENTERPRISES LTD NEW
DEJ | 9/18/2008 8:00:04 AM
Company Now Producing 630 BOE Daily
Updates Market on Peace River Arch Winter Exploration Program, And Piceance Basin Developments
CALGARY, Sep 18, 2008 (BUSINESS WIRE) --
Dejour Enterprises Ltd. (Amex:DEJ)(TSX-V:DEJ)
announces that two additional wells from its Woodrush project in NE BC are
being brought on line for production today, which brings its total production
to 630 barrels of oil equivalent daily, using a standard 6000 cubic ft. of gas
to 1 barrel of oil ratio. In addition, the company has announced its winter
exploration plan for its Peace River Arch property and developments in the
The Company's current production levels suggest that operating netback
revenue per month by December 2008 will reach a level of C$1.1m assumed
completion of tie-ins described below. The netback is equal to the gross
revenues less royalties, lease operating expenses and transportation costs.
Dejour's Chairman and CEO Robert L. Hodgkinson said, "We are very excited by the increased
production these wells represent. We anticipate further production increases in
the coming months, and 2009 promises to be a good year for Dejour
based on the success we have had in developing our properties."
Assuming tie-ins described below, the Company's current anticipated production
status is as follows:
Project Period Online Net Gas/d Net Oil/d Total BOE/d Equivalent
Drake (4) Q2/08 2000 mcf/d 334
Woodrush Q3/08 700 mcf/d 116
Woodrush Q3/08 180 barrels (restricted) 180
Total Q3/08 2700 mcf/d 180 barrels (restricted) 630
Q4 Incremental Production
Project Period Online Net Gas/d Net Oil/d Total BOE/d Equivalent
Carson Creek Oct/08 1800 mcf/d 100 barrels 400
Saddle Hills (2) a Q4/08 500 mcf/d 83
2008 Total Estimated Production Exit Rate 5000 mcf/d 280 barrels 1000+
aDejour not the operator- timing for
production indeterminate
The program is expected to begin in early to mid December 2008 depending on
winter freeze. In this area, field work is typically from December through
March, and requires cold temperatures for drilling. Dejour
plans to drill and complete into pipe 4 development wells at its Woodrush
facility, continue to evaluate the Montney sand/shale
potential of its recent land purchases (6350 acres,100% owned), and potentially
drill up to 2 additional wells at either Saddle Hills or Carson Creek pending
production profiles and current negotiations. This winter program (budgeted at
C$10M) is expected to be funded by current and future cash flow and credit
facilities.
Dejour
Energy (USA) Corp., COO Harrison Blacker reports progress in completing site specific
engineering and geological assessment of several of Dejour
land blocks, including the processing of drilling permits at the Company's Roan
Creek, Williams Fork project where 7 drill sites have been chosen to host 50-80
wells. Operations are to commence in 2009.
Dejour Energy
Williams Fork resource gas (1500+wells) 30,000 acres 72%WI Dejour operator
Mancos B Shale resource gas 22,000 acres 72%WI Dejour operator
Weber Subthrust wildcat oil 74,000 acres 72%WI Dejour operator
Greentown/Cane Creek resource gas/oil 14,000 acres 25%WI Fidelity operator
Re-sale lands gas/oil 150,000 acres 25%WI Retamco operator
The company is pleased to have established an operating presence in this
basin and has now been successful in attracting a highly qualified and
experienced staff to prudently execute the profit maximization model associated
with each business unit. This includes preparation to drill, economic
assessment of joint ventures and farm out opportunities, pipeline access and
divestitures under attractive terms.
Charles Dove, P. Geophysics and Harrison Blacker, M. Engineering are the
'qualified persons' for this report.
BOEs may be misleading, particularly if used in
isolation. A BOE conversion ratio of 6 Mcf: 1 bbl is
based on an energy equivalency conversion method primarily applicable at the burner
tip and does not represent a value equivalency at the wellhead.
About Dejour
Dejour Enterprises Ltd, an active micro cap oil
and natural gas explorer and producer, strategically assembles and develops
North American energy properties. The company has 150,000 net acres of premium
energy assets in two of
Dejour's energy portfolio also includes a
significant interest in uranium discovery through carried interests and control
holdings of Titan Uranium, Inc. (TSX-V:TUE)
Dejour, headquartered in
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
The TSX Venture Exchange does not accept responsibility for the adequacy or
accuracy of this news release.
SOURCE: Dejour Enterprises Ltd.
Dejour Enterprises Ltd. Robert L. Hodgkinson, Chairman & CEO,
604.638.5050 Facsimile: 604.638.5051 investor@dejour.com
Copyright Business Wire 2008