Dejour's First Drake Well Tests At 930 MCF Per Day
Vancouver, BC - Dejour Enterprises Ltd. Robert L. Hodgkinson, Chairman & CEO announced, further to the release of April 2, 2007, that drilling activity conducted by Dejour Energy, Alberta is continuing as planned with five operations currently underway.
Drake Prospect Discovery Dejour has successfully drilled 2 wells on the Company's 1500 acre, 100% working interest ("WI"), owned Drake prospect. The wells were drilled to the Notikewin formation and production pipe was set on both. The first well was perforated without stimulation and tested flow rates averaging 930 thousand cubic feet per day (MCF/D). Dejour's geologists report that the logs of the second well appear equal to or better than the first. Due to the advent of road bans now in effect in this northern part of the Peace River area, testing of the second well, following stimulation, will occur directly into production lines to be laid when ground conditions permit.
Dejour estimates it will realize combined daily production flow rates ranging from 1500-2000 MCF/D net to its 100% before payout WI from these wells. After payout, Dejour will retain a 60% WI. Production flow rates may differ from test flow rates. (One MCF is roughly equivalent to 1mmBTU which is the quoted gas contract on the New York Mercantile Exchange. Current price is approximately US$7.65 per mmBTU).
Expansion plans include the licensing of 2 additional locations to be drilled later in the year (100% WI) to test the same Notikewin sands, which is the major producer in this Drake area of the Peace River Arch (over 207 wells producing over 46 BCF gas since 2001). There are deeper formations that may be a target for further gas accumulations. The decision to test these will follow interpretation of available 3D seismic.
Dejour holds drilling rights averaging 22% to over 45,000 additional acres of O&G lands in the hydrocarbon-rich Peace River Arch region of NW Alberta/NE British Columbia. These holdings are in addition to its key interests in almost 300,000 gross acres of natural gas leases in the Piceance-Uinta Basin of Colorado/Utah; a controlling interest in publicly traded and well capitalized Titan Uranium currently valued at CDN $50M, plus a 10% carried interest and a 1% NSR in almost 1 million acres of prime Athabasca Basin uranium exploration lands - the world's #1 uranium address.
Charles E. Dove is the qualified person for the Peace River Arch prospect.
SOURCE: Dejour Enterprises Ltd.