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Dejour Flows First Natural Gas from Peace River Arch
Vancouver
BC, April 4, 2008: Dejour Enterprises Ltd. is pleased to announce the
completion of its winter exploration program resulting in the initiation of
natural gas production from its operations in the Peace River Arch project
area of northeastern BC.
In Q1-08
Dejour made significant progress transitioning from an exploration to a
production oil and gas company. Highlights include:
- 11 new wells drilled in the
Peace River Arch area targeted to produce 8-10 mmcfe/day natural gas.
- Testing to date of Q1 Peace
River Arch discoveries and development wells resulting in over 10
mmcfe/day test flow rates with testing and evaluation to be completed on
three of the wells in Q2.
- Prepared and filed
National Instrument 51-101 for Canadian Proven and Probable
Reserves (as of 12/31/07)
- Prepared and filed
National Instrument 51-101 for US proven and probable reserves (as of
12/31/07)
The first four
gas wells, two of which were drilled in March and April of 2007, at the
Company's Drake area have now been equipped and tied into sales lines.
Initial production will be phased in over the next week to a planned rate of
2.5 million cubic feet per sweet natural gas per day, as previously announced
for these wells.
Following the
lifting of road bans which affect this area every spring, Dejour expects to
complete equipping and tie-in of the balance of its production by early
Q3-08. With the setting of initial allowable production rate limits placed on
some wells by Provincial governments, Dejour now expects that its production
volumes may be initially restricted to 8 million cubic feet of natural gas
equivalent per day. Additional development, coupled with an established
production history, will allow application for higher well flow rates as
established by previous production flow tests. Production is forecast to be
80% gas and 20% oil, within the restriction of current allowable government
production rates.
Plans for
further development of these and other projects are now being formulated,
targeting a minimum 8-12 additional wells (both exploration and
development) for the winter drilling season of 2008-09.
Some of the
operational objectives Dejour will be targeting in Q2 and Q3 are:
- Increasing production from the
Peace River Arch,
- Updating proven and probable
reserves from the new Peace River Arch winter exploration program
discoveries,
- Completion and tie-in of the
Piceance Basin Barcus Creek #1-12 and #2-12 wells,
- Rationalizing the Company's
Piceance-Uintah E&P strategy, and
- Eliminating operational burn
rate.
Charles E. Dove,
P. Geophysics. is the qualified person for this report.
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.
About
Dejour
Dejour
Enterprises Ltd. is a micro cap Canadian company creating 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 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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