Too bad there isn't a basket of of these we can buy.
I have Choice, Diaz, Kroes and DeJour (DJEEF).
Dejour Enterprises picks up 43% interest in Tinsley play
2005-09-06 17:21 ET - News Release
Shares issued 25,728,036
DJE Close 2005-09-06 C$ 0.60
Mr. Robert Hodgkinson reports
DEJOUR TO DRILL TINSLEY DEEP GAS-CONDENSATE PROSPECT IN YAZOO COUNTY MISSISSIPPI
Dejour Enterprises Ltd. has purchased a 43-per-cent interest in the Tinsley deep gas prospect located in the central portion of Yazoo county, Mississippi. The prospect includes 5,225 gross acres and 4,786 net acres covering all rights below the base of the Hosston formation (Jurassic system). The operator proposes the drilling of a test well to 12,000 feet in the fourth quarter of 2005 sufficient to test both the Smackover and Norphlet formations which appear on 45 square miles of excellent quality 3-D seismic data to be draped over the entirety of a large Louann age piercement salt dome. The initial well will be drilled on the up-thrown side of a down-to-the-north-faulted anticline with indicated four-way closure that could exceed 2,400 feet.
The operator's combined reserve estimate for Smackover and Norphlet reservoirs exceed 633 billion cubic feet of gas and 13.8 million barrels of oil.
The Tinsley field was discovered in 1939 by Union Producing Company and has produced over 400 million barrels of oil to date from higher up Cretaceous formations. The highly overpressured Deep Smackover gas trend of west-central Mississippi, which exhibits porosities between 8 to 15 per cent, has produced almost a trillion cubic feet of gas including the state's most prolific gas well, which alone has produced over 139 billion cubic feet of gas over two decades and is still producing at significant commercial rates.
The Tinsley prospect represents a unique opportunity for Dejour. The rights originally developed and held by Union Producing Company, later becoming Pennzoil Exploration and Production Company, were subsequently sold to Devon. In 2000, Devon retained an independent petroleum consultant to evaluate the merit of deeper (Jurassic) formations. That independent consultant stated:
"We recommend ... the drilling of a 12,100 foot well ... to test the Norphlet sandstone in a large closure upthrown on the main down-to-the-north Tinsley fault. We estimate the Norphlet will be encountered 2,400 feet structurally high to the Conoco Childress No. 1, a well that had mud log gas shows from 70 feet of low permeability Norphlet sandstone. The Norphlet should be 2,000 feet high to the Jones Berry No. 1 and Nannie Berry No. 1 wells that both tested sweet gas at low rates from the Norphlet. The prospect closure encompasses over 4,600 acres and has reserve potential of 184 BCF of gas."
The consultant further reported:
"Since most of the downdip penetrations have greater than 100 feet of net Norphlet sand the reserve potential could exceed 250 BCF of gas. The possibility of finding prolific Norphlet sands on a closure this large and pronounced makes this a very attractive exploration opportunity. The primary risks are sand quality and fault seal." Before taking action on the recommendation report, Devon sold its Tinsley interests to Merit Energy Company, a large independent financed by Harvard and Stanford trusts. Merit, due to its trust obligation, is unable to incur exploration expenditures.
Dejour will pay an unpromoted 43 per cent of its share of acquisition costs (land, brokerage, seismic and processing), being $250,389 (U.S.) plus an estimated $1,287,406 (U.S.) for drilling and abandonment costs (one-third for a one-quarter basis) to earn in the initial well a 34.9375-per-cent working interest before initial payout (BPO) or 28.21875-per-cent net royalty interest BPO and 29.428126-per-cent WI after payout (APO) or 25.237268-per-cent NRI APO. Dejour would pay its earned interest of completion costs estimated at $370,285 (U.S.). Dejour intends to reduce its exploration risk in the Tinsley prospect through farm-out, while maintaining at least a 25-per-cent WI
News 
Market Data 
Discover 
