Dejour Primed for Piceance-Uinta Drilling Program
Vancouver, British Columbia, Canada, June 21, 2007 –
Dejour Enterprises Ltd. (“Dejour”) (TSX-V: DEJ, Amex:DEJ,
Frankfurt:D5R) Robert L. Hodgkinson, Chairman &
CEO is pleased to provide an update on the Company’s exploration &
production operations in the Piceance and Uinta Basins of Colorado and Utah:
North Barcus Creek - Rio
Blanco Project Area
Dejour
has been informed by its operating partner, Retamco Operating, Inc.
(“Retamco”), that all appropriate permits have been secured from
the Colorado Bureau of Land Management (BLM) and the Colorado Oil and Gas
Conservation Board to drill the first 2 wells at North Barcus Creek.(#1-12N and
#2-12N), except for the final approval of the pit liner leak detection system
which is expected within the next two weeks. Drill site preparation
should be concluded by August 15/07 at which point drilling operations will
commence.
The
1,600 acre North Barcus Creek lease block lies directly between a large Exxon
lease block directly to the east and a large lease block owned by EnCana to the
west. The Exxon lands host four recent natural gas resource discoveries drilled
by Williams Cos. immediately offsetting the Company’s North Barcus Creek
leases. The EnCana lands are part of a $400 million USD earn-in joint venture
($40,000 USD per acre) by ConocoPhillips where two rigs are continuously
drilling. Production from this new development area comes from wells within 5
miles of the aforementioned drill sites.
Target depth for the two initial wells is 11,500 feet,
sufficient to test over 2,000 feet of the Williams Fork (Mesa Verde) and the
Upper Isles formations. Results will guide the pace and scope of future
development of natural gas on this lease block. To enhance operating and
cost efficiency, the Company will utilize reverse circulation rigs to the set
point of surface casing, at which point a triple rig will drill each well to
target depth. The operator is currently in the process of contracting drill
rigs, at which point AFE’s (Authorities for Expenditure) will be
finalized. New pipeline capacity has recently been installed two miles to the
east of this operation to handle production.
Successful completion of these two wells will lead to the
drilling of the North Barcus Creek #3-12 and #4-12 wells at two additional
surface location sites within the project area. Each drill site will be able to
ultimately host multiple wells. Initial costs ( AFE’s) are estimated to
be $3.8 million USD per well. Dejour retains a 25% interest in these lands and
drilling program.
Maps, photos and further details can be found http://www.dejour.com/projects-north-barcus-creek.htm
Roan Creek - West
Grand Valley
Project Area
This
project area, offsetting lands owned by Williams Cos. and Occidental Petroleum,
is 2 to 3 miles south of new Occidental-operated gas production with easy
access and ample pipeline facility. A ‘Notice of Staking’ for 4
initial wells to a depth of 6,500 feet each has been submitted to the BLM with
approvals expected by 15 September 2007.
Upon analysis of the production profiles of these wells,
this 1,600 acre lease block could ultimately host between 20 and 80 wells
(40-10 acre spacing units). AFE’s through completion should approximate
$2 million USD per well. Dejour also retains a 25% interest in these lands and
drill program.
Maps, photos and further details can be found at
http://www.dejour.com/projects-roan-creek.htm
Tri-County Project Area
To
capitalize on past exploratory activity in the Tri-County area, preparations
are underway to re-enter between 1 and 4 wells drilled and cased to 5,000 feet by
earlier operators and currently maintained in operable condition. Rigs will now
drill to 9,500 feet to intercept the prospective conventional Dakota, Entrada
and Wingate sands believed to be present at these locations. These are the same
zones that comprise the existing source of production and proven reserves in
the San Arroyo field 5 miles to the south.
AFE’s for the deepening and testing of these wells is
expected to be $500k-1mm USD per well. Dejour retains a 25% interest in these
leases and drill programs.
Maps and further details can be found at http://www.dejour.com/projects-tri-county.htm
Plateau Project Area
Dejour
and its partners currently maintain a 50/50 joint venture with EnCana USA in
this 1,300 acre lease block which offsets Dakota production that initially
flowed over 4 million cubic feet per day from a single well. The partnership
intends to notify EnCana of its plan to drill one Dakota well to a depth of
7,500 feet.
Successful Dakota production in this area should facilitate
further development with 160 acre spacing units. AFE’s should approximate
$2 million USD per well. Dejour retains a 12.5% interest in this lease block
and drill program by virtue of the EnCana involvement.
Maps and further details can be found at http://www.dejour.com/projects-plateau.htm
CBM Project Potential
Trending throughout numerous of the 21 project areas
comprised of the 290,000 gross acres of leases held in part by Dejour (25%) are
substantial deposits of Cameo coals hosting the potential for economically
viable CBM projects. Dejour and partners have retained Dr. Chris Cornelius, a
specialist in CBM resource development, to complete a study on the CBM
potential of Company leases. Dr. Cornelius, who has headed several projects for
Evergreen Resources (now Pioneer NG), a leader in development of CBM in the
Piceance Basin, has targeted an initial assessment report by the end of August
2007.
R.
Marc Bustin, Ph.D., P. Geol., FRSC, is the qualified person for Dejour’s
oil and gas projects.
About Dejour
Dejour
Enterprises Ltd. is a micro cap Canadian company focused on oil & gas
exploration with a significant indirect investment in uranium discovery.
The company acquires high-impact energy assets and strategically monetizes them
through partnerships and co-ventures to limit exposure and enhance returns.
Dejour has significant holdings in three of the world's
premiere energy resource regions. This includes 290,000 gross (60,000 net)
acres in the Piceance and Uinta Basins, a vast natural gas play in North
America; and a major interest in Titan Uranium, Inc. (TSX-V: TUE), with 1.44
million acres in the Athabasca and Thelon Basins, the world's most recognized
areas for uranium exploration. Finally, the company is pursuing high impact
natural gas opportunities in Canada's Western Sedimentary Basin, known as the
Peace River Arch Projects, comprised of 39,000 gross acres. The Company is
listed on the TSX Venture Exchange (DEJ), AMEX (DEJ), and Frankfurt (D5R).
Refer to www.dejour.com for
company details or contact the Office of Investor Relations at investor@dejour.com
Statements in this release that are forward-looking
statements are subject to various risks and uncertainties concerning the
specific factors disclosed under the heading “Risk Factors” and
elsewhere in the Corporations’ periodic filings with Canadian securities
regulators. Such information contained herein represents management’s
best judgment as of the date hereof based on information currently available.
The corporation does not assume the obligation to update any forward-looking
statement.
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.
Suite 1100-808 West Hastings Street, Vancouver, BC Canada V6C 2X4
Phone: 604.638.5050 Facsimile: 604.638.5051
Email: investor@dejour.com
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