Dejour Enterprises Ltd., announced that it has completed the new acquisition of approximately 64,000 net acres within the most active exploration and production basins in Colorado and Utah from privately held Retamco Operating Inc.
This transaction positions Dejour with 100% operational control of approximately 125,000 acres and 128,000 total net acres of leasehold property in Colorado and Utah.
This additional acreage was acquired in exchange for Dejour's 25% working interest in roughly 3,500 acres and two wells at North Barcus Creek, a cash payment of approximately 4 million and other valuable consideration. The North Barcus Creek wells were drilled on joint acreage by Retamco at the end of 2007 and are awaiting production tie-in.
This transaction completes the first step in Dejour's strategy to develop a major operating presence in several of the most promising producing basins in the Rocky Mountain Region. Over the next two years, Dejour plans to drill and complete at least 10 exploration wells on the newly acquired acreage in the Piceance Basin and then, based on the exploration results, move directly into full resource development.
"As the majority working interest owner and operator of the Piceance acreage we are now in position to drill and in some cases promote the drilling of a number of key wells over the next year to eighteen months, while we implement a resource development plan that may take 7 to 10 years to fully execute. We also expect to be involved in drilling activities to follow immediately in other new basin discoveries including the Greentown area of the northern Paradox Basin in Utah. The continued escalation of petroleum land values in these Rocky Mountain Basins, buoyed by sharply higher product pricing, drilling activity and off-take infrastructure, secures for Dejour a superior position to reap the full value potential of its resource investment here," said Dejour USA, President, Harrison Blacker.
"I am very pleased to see this step of our strategic plan successfully executed. This new acquisition, with the operational control it infers, assures Dejour a prime avenue to channel cash flows from existing successful investments over the next 24 months, to unleash the real value of these prime Piceance, Uinta and Paradox Basin properties," said Dejour Enterprises CEO, Robert L. Hodgkinson.
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