PRESS
RELEASE
DEJOUR ENTERPRISES
LTD.:
Amex: DEJ / TSX-V: DEJ
FOR
RELEASE:
February 11, 2008
Dejour On Track
for Natural Gas Production in Canada’s
Peace River Arch
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 > 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 #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 opportunity”.
PEACE RIVER ARCH CANADA - DRAKE PROSPECT
Dejour
has now flow tested both its third and 4th wells, both 100% owned.
Well #3 flowed over 500,000 cubic feet of natural gas per day from the ‘Notekewin’ sands with porosities as high as 24%. The
#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 #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 #6 location
to again test multiple zones which show potential on 3D seismic coverage
analogous to the #5 well.
The #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 these wells.
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 area.
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 > 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 #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.”
OTHER PROJECTS
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.
About Dejour
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 at investor@dejour.com
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.
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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