News for 'DEJ' - (Woodrush Waterflood Program Underway Dejour 2011 Woodrush Production Forecast to Rise by 50%)
VANCOUVER, British Columbia, Nov 08, 2010 (BUSINESS WIRE) -- Dejour Enterprises
Ltd. (NYSE-AMEX: DEJ / TSX: DEJ) announces that it has submitted to the British
Columbia Oil and Gas Commission ("OGC") an application for improved recovery in
the Halfway Oil Pool at the Woodrush Field, Northeast British Columbia, through
the implementation of a waterflood program. The company has commissioned the
engineering design and procurement effort for the project in anticipation of
commencing water injection prior to the end of January, 2011.
Due to a naturally increasing gas component, the Woodrush oil production is
currently experiencing a well allowable restriction imposed by the OGC of
British Columbia, to conserve this oil resource during waterflood
implementation. This will be phased out once water injection has commenced.
Dejour expects average daily gross production from Woodrush to be approximately
650 BOE/D for the remainder of Q4, 2010. This gross production profile is
expected to increase to an estimated 850 BOE/D in early 2011 and continue to
increase to a level of 1200 to 1400 BOE/D by the second half of 2011, 65% oil, a
gross production level sustainable for the foreseeable future. Dejour, the
operator, holds a 75% working interest in this project.
The Company expects, on a temporary basis, to experience lower sequential
operating revenue and cash flow in Q4-2010 as a result of the above. However,
proceeds from disposition of a non-core property will substantially offset this
impact. For fiscal year 2010, the Company expects total revenue of C$8 Million
(an 18% increase over 2009), all from the Woodrush Field. Revenue contribution
to Dejour in 2011 from Woodrush current operations is estimated to increase by
50% to C$12 Million, unrisked, current pricing, as the waterflood takes hold. At
this production rate the project is expected to have a reserve life of at least
6 years.
Dejour will report its Q3-2010 earnings on November 15, 2010."The waterflood at Woodrush represents a significant milestone in the evolution
of Dejour. The program is expected to double the amount of recoverable oil from
this Halfway pool and provide both a consistent and strong revenue stream to
support profitability once fully operational. With the trend of oil prices
rising into 2011, implementation of this program at Woodrush is particularly
timely," commented Robert L. Hodgkinson, Co-Chairman and CEO.
About Dejour
Dejour Enterprises Ltd. is an independent oil and natural gas company operating
multiple exploration and production projects in North America's Piceance Basin
(109,000 net acres) and Peace River Arch regions (20,000 net acres). Dejour's
veteran management team has consistently been among early identifiers of premium
energy assets, repeatedly timing investments and transactions to realize their
value to shareholders' best advantage. Dejour maintains offices in Denver, USA,
Calgary and Vancouver, Canada. The company is publicly traded on the New York
Stock Exchange Amex (NYSE - Amex: DEJ) and Toronto Stock Exchange (TSX: DEJ).
Non-GAAP Measures: This news release contains references to non-GAAP measures.
Operating Netback is a non-GAAP measure defined as revenues less royalties and
operating and transportation expenses. This measure may not be comparable to
similar measures presented by other issuers. These measures have been described
and presented in this document in order to provide shareholders and potential
investors with additional information regarding our liquidity and our ability to
generate funds to finance our operations.
Statements Regarding Forward-Looking Information: This news release contains
statements about oil and gas production and operating activities that may
constitute "forward-looking statements" or "forward-looking information" within
the meaning of applicable securities legislation as they involve the implied
assessment that the resources described can be profitably produced in the
future, based on certain estimates and assumptions. Forward-looking statements
are based on current expectations, estimates and projections that involve a
number of risks, uncertainties and other factors that could cause actual results
to differ materially from those anticipated by Dejour and described in the
forward-looking statements. These risks, uncertainties and other factors
include, but are not limited to, adverse general economic conditions, operating
hazards, drilling risks, inherent uncertainties in interpreting engineering and
geologic data, competition, reduced availability of drilling and other well
services, fluctuations in oil and gas prices and prices for drilling and other
well services, government regulation and foreign political risks, fluctuations
in the exchange rate between Canadian and US dollars and other currencies, as
well as other risks commonly associated with the exploration and development of
oil and gas properties. Additional information on these and other factors, which
could affect Dejour's operations or financial results, are included in Dejour's
reports on file with Canadian and United States securities regulatory
authorities. We assume no obligation to update forward-looking statements should
circumstances or management's estimates or opinions change unless otherwise
required under securities law.
The TSX does not accept responsibility for the adequacy or accuracy of this news
release.
SOURCE: Dejour Enterprises Ltd.
CONTACT:
Dejour Enterprises Ltd.
Robert L. Hodgkinson, 604-638-5050
Co-Chairman & CEO
Facsimile: 604-638-5051
investor@dejour.com
or
Investor Relations -- New York
Craig Allison, 914-882-0960
callison@dejour.com
Copyright Business Wire 2010
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