Now, in July 2007, Dejour has successfully purchased through crown auction, 100% WI interest in 2100 additional acres associated with these discoveries at a cost of CDN $566,000.
Plans have been formulated to execute an exciting E&P program on these Drake area lands, which will see an estimated CDN $850,000 of new 2D and 3D seismic, the re-entering of two existing well bores, the drilling of seven new wells and the completion and tie in of a total of eleven (11) wells to multiple productive sands by March-April of 2008.
The Dejour Alberta E&P team, headed by President and COO Charles Dove, Professional Geophysicist, estimates that this program is prospective for the development of a resource in excess of 18 billion cubic feet (Bcf) natural gas (14 Bcf net to the Company) targeting Dejour's share of initial production from this program at 14 million cubic feet of natural gas per day (Mmcf/d). This estimate is based on existing wells in the area drilled into similar prospects. The classification is pursuant to NI 51-101 requirements (See below).
Total remaining budget of this operation plan will approximate CDN $9 million (in addition to expenditures to date of almost CDN$ 2 million), including all land and seismic costs. This represents an un-risked finding/development cost of less than $1 per thousand cubic feet (Mcf).
Drake is one of 14 exploration projects currently of interest to Dejour in the Peace River Arch area, where company plans include exposure to discovery in almost 45,000 acres of oil and gas lands with an average working interest between 25 and 30% after payout.
To assist Dejour in the timely execution of these E&P programs, Dejour Alberta has expanded the company's Calgary office and retained the services of a Professional Engineer and a Landman to augment the management team of the Drake development, including the timely land, legal and budgetary requirements of the Drake operation and accelerate activity on other company projects. Both individuals are pedigreed professionals with a combined 40 plus years experience focused on managing E&P programs in the Alberta/BC hydrocarbon basins.
Elsewhere in the Peace River Arch project area, Dejour is preparing to complete the testing and tie-in of its 30% owned Saddle Hills discovery into pipe by the end of August 2007. A first offset well to this discovery will follow shortly. At least four additional projects (including the 90% WI Cecil property, where seismic data has been purchased and is currently being evaluated) being considered for drilled during Q3-4 2007. Dejour continues to request that lands be posted for sale by the B.C. and Alberta governments to open new prospects in the Peace River Arch area for future drilling.
Charles Dove, Professional Geophysicist is the qualified person for this news release.
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