Dejour announced that its Carson Creek gas/oil project in NW Alberta has been brought on line for continuous production today. The well which was initially brought on a few weeks earlier required some additional choke installation. This addition is expected to raise Company production rates to more than 1000 barrels of oil equivalent daily (BOE), having previously tested at rates of over 3 million cubic feet of gas and 300 barrels of oil/day at shut in pressure of over 1600 psi. Production rates at this well are expected to be restricted to about 1.5 million cubic feet and 150 barrels of oil/ day by year end, to coincide with downstream gathering system pressures.
Using the quoted ATB Financial current 2009 price for oil at $US54.74 (C$67.40) and natural gas at C$6.32, the Company’s current production levels suggest that gross revenue by January 2009 will have reached an annualized base of C$17.6 million per year, with an operating netback (gross revenue less royalties, operating and transportation costs) of C$7.8 million per year.
Chairman and CEO Robert L. Hodgkinson states, “Dejour is pleased to have achieved its 2008 production growth goal from zero to more than 1000 BOE per day in the Peace River Arch. The winter 2009 program includes executing a low risk program to drill and complete for production up to 4 new development wells at its 100% owned Woodrush oil facility, and for well bore testing to further evaluate its 100% owned Montney sand/shale potential acquired through recent land purchases (6350 acres). This activity is expected to be funded substantially by cash flow and credit facilities."
Three additional non-operated gas wells drilled in 2007 and 2008 are awaiting tie-in by other operators. One additional Dejour operated well awaits further drilling prior to tie-in.
Piceance Basin Update
Dejour is pleased to note that lands adjacent to 2200 acres of Company landholdings in the Gibson Gulch production area of the Piceance Basin have recently been purchased for US $10,600 per acre. This represents a very healthy premium to the $400 per acre cost paid by Dejour in late 2006. Gibson Gulch represents 1.25% of Dejour's active property holdings in the United States.
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