Woodrush Waterflood Program Underway

Dejour 2011 Woodrush Production Forecast to Rise by 50%
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.
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