Dejour Doubles Success at Woodrush Project

Dejour Enterprises reported two new oil and gas discoveries at its 75% owned Woodrush project in the Peace River Arch, NE British Columbia. The two wells were drilled based on the preliminary interpretation of a new 3D seismic program acquired and processed during this winter's drilling season.

The first discovery (A-A91-H/94-H-02) was drilled to 4000', encountered 8 meters of good quality (14% porosity) Gething Sand. The well was perforated on March 12, and flowed for four hours at rates as high as 950 thousand cubic feet per day during clean up operations. Gathering lines to the production facility are being laid with production to commence prior to month end at a production rate anticipated by management to be in excess of 1 million cubic feet gas per day. Management believes that this new gas discovery will be subject to a net 2% royalty under the new BC Government royalty incentive program for the first 12 months of production.

The second well (A-1-I/94-H-02) was also drilled to 4000' over a separate feature north of Dejour’s Halfway discovery in well (D-91-H). This well encountered five meters of highly porous (21-24%) sand in the Halfway section with a log calculated oil saturation of 80%. Logs on this well also indicated the presence of a productive Gething section above the Halfway sand.

Casing is now being set and the well is anticipated to be completed and tested in the Halfway later this week. Results of the well test will be forthcoming.

"This concludes the winter drilling program at Woodrush. We are very pleased with the results of the first two wells drilled to targets identified with our new seismic. The seismic indicates at least two more drilling targets on Dejour’s leasehold that we were unable to access prior to break-up. We will continue to refine our interpretation of the seismic and expect to be back in the field drilling additional wells later this year," stated Dejour’s Manager of Canadian Operations Steve Crane, B.Sc. Petroleum Eng., MBA.


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