April 12, 2009- -Dejour Enterprises Ltd. (NYSE-AMEX: DEJ; TSX: DEJ)
Dejour Enterprises Ltd (NYSE-AMEX: DEJ; TSX: DEJ) released a new Corporate Profile this week with operational highlights for a number of their key oil and gas prospects, outlining drilling plans as well as prospective targets values of natural gas and oil resources. Dejour has spent the last two quarters restructuring their balance sheet by paying down debt levels and instituting a series of cost cutting measures to reduce cash expenditures by $2M per year. Dejour’s current net revenues from production revenue cover the Company’s Canadian operations. During this time the Company has also completed two joint venture partnerships which will contribute major new drilling funds to projects without Dejour having to come out of pocket to fund capital expenses.
Dejour present growth opportunities are significant, targeting present value (PV) levels totaling approximately CAD$800 million dollars in oil and gas assets from their core energy prospects.
The properties covered in the report include: Gibson Gulch, Roan Creek, Montney, Woodrush, and Rangley.
Highlights from the report include:
Gibson Gulch – Western Colorado 2,200 acres (1,585 net) formation: Williams Fork/Mancos combination
• Estimated 179 BCF (103 BCF net) resource in Williams Fork
• Potential Value: $95M net at 90¢ per Mcf
Roan Creek – Western Colorado 1,500 acres (1,080 net) formation: Williams Fork
• 50M+ BCF (net potential) resource
• Resource Value: $50M at 90¢ per MCF
Montney – North East British Columbia 6,350 acres in a new Montney discovery area
• Potential Value: $200M, based on 220 BCF+ at 90¢ per BCF
• Recent Montney/Doig discovery in the area yielded 12MMcf/d, the best producer to date in this play
Woodrush – North East British Columbia: currently producing six wells and developing a drilling plan for 2009
• Current production at 3.0MMcf/d and 165 boe/d (665 BOE/day equivalent at the conversion rate of 6,000 cubic feet of natural gas per barrel of oil).
• Reserves estimated to grow from 1,100,000 BOE to 3,000,000 BOE
Rangley Western Colorado JV with Laramie Energy 22,000 acres – 33% interest
• 200+ sites could yield 100Bbl/d per well
• Gross reserves = 50 million BO
• Potential value to Dejour = $250M at $15/Bbl
With rig counts continuing to fall in North America, it is anticipated that new supply streams of domestically produced oil and gas will not be available to keep pace with demand and prices down over the mid to longer term. In fact, over the past week or so, we have seen the price of natural gas move up sharply from recent lows to break the $4.00 per mcf level. This is an example of just how quickly energy prices can move based on incremental supply. With Dejour moving forward on a number of fronts to increase both their daily production (about 665 barrels per day oil equivalent currently from their Woodrush property) as well as proven reserves, we see this Company well positioned to take advantage of lower drilling and operational costs to improve their operating numbers and add value to their large portfolio of land holdings. With what many expect to be eventual improvement in pricing for both oil and gas energy components, these efforts should increase value for Dejour and their shareholders as strength comes back into the energy markets.
The full corporate profile with additional information on each of these oil and gas plays is available at: www.babybulls.com/Dejour_Corporate_Profile-05-01-09.pdf
We will continue to keep you updated on Dejour’s progress here at Babybulls.com
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