Dejour Secures Approval for Waterflood of Woodrush Oil
Secondary Recovery to Significantly Improve Reservoir Value
Dejour Enterprises Ltd. (NYSE AMEX:DEJ/TSX:DEJ)
(the 'Company? or 'Dejour?) announces that it has received approval from
the BC Oil and Gas Commission for the implementation of a waterflood
program in the Halfway Oil pool at its Woodrush project in Northeastern
British Columbia. Project design has been completed and construction
will begin in early January. The project includes the drilling of a
water supply well, converting one producing well to injection and
drilling a second injector, upgrading power generation, installing
pumps, additional tankage and water treatment facilities at a gross cost
of $3.2 million.
Water injection is expected to commence in early February, resulting in
an immediate increase in production as the new pool rules take effect
and the current British Columbia well production allowable scheme is
phased out. Production from the pool is projected to increase throughout
the year with peak response to water injection expected in the third
quarter of 2011. At that time a third producer may be drilled. Dejour
has a 75% WI in this project.
'The successful implementation of this milestone project will complete
the development of the Halfway oil pool. The waterflood will increase
the recovery of the oil in the pool from 17% to 42% of original oil in
place, providing sustained, economic oil production for the next several
years that will allow Dejour to accelerate repayment of an existing
credit facility, attract a longer term more conventional banking
facility, with the respective cost savings and fund other developing oil
opportunities in the area out of cash flow,' comments Hal Blacker,
Dejour COO.
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 (107,000 net acres) and Peace River Arch
regions (15,000 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).
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, Co-Chairman
& CEO
598 ? 999 Canada Place,
Vancouver, BC Canada V6C
3E1
Phone: 604-638-5050 Facsimile: 604-638-5051
investor@dejour.com
or
Investor
Relations ? New York
Craig Allison, 914-882-0960
callison@dejour.com
