Dejour Enterprises Receives Resource Report on Piceance/Uinta Properties
Dejour Enterprises has received reports evaluating the resource potential of its "Retamco JV" properties in the Piceance and Uinta Basins (the "Retamco JV"). The report, authored by Houston, Texas-based W.D. Von Gonten & Co., Petroleum Consultants (dated October 24, 2006), states there is a resource potential for 4.107 Trillion Cubic Feet of natural gas and 2.055 Billion Barrels of Oil, to the 100% interests. Dejour is assigning this potential to the category of "undiscovered" resources pursuant to NI 51-101 requirements. Additionally, Williams & Associates, Petroleum Consultants, of Midland, Texas, calculates the potential resource of associated Coal Bed Methane to be in excess of 1.2 TCF. Dejour is assigning this potential to the category of "prospective" resources, again pursuant to NI 51-101.
The Von Gonten report, prepared for Retamco Operating Inc., partner/operator of the Retamco JV and a significant shareholder of Dejour, as a result of the Retamco JV, assigns resource potential to 14 of the 18 project areas within the Piceance and Uinta Basins. The remaining project areas will be reported shortly.
Subsequent to the report, Delta Petroleum reported a significant discovery in the Paradox Basin (Southern Uinta), a project area in which Dejour holds a 25% interest in 24,500 acres of lands previously unvalued within the Von Gonten report.
Dejour owns a 25% WI in the gas resource potential and 12.5% WI in the oil resource potential as discussed in these reports. Certainty of the economic viability of this resource potential at this time is not yet determined, based on COGE standards.
The Retamco JV, which includes Dejour, Brownstone Ventures and Retamco Operating Inc., has requested that W.D. Von Gonten & Co. update their report and, where appropriate, establish proven undeveloped reserves (PUD) in areas where extensive drilling and production activity have taken place. This report is expected early in 2007.
Dejour has been advised by Retamco that drill permits are expected to be approved in December by the Colorado Bureau of Land Management (BLM) that will allow the drilling of four 12000' wells proposed on the Barcus Federal Prospect, a 3 section -1920 acre lease block that forms part of the Retamco JV Rio Blanco Project Area. A drill rig currently operating on adjacent lands will be available early in January 2007. Additional permits should be forthcoming early in the New Year.
Retamco further advised that Exxon Mobil has recently completed for production 4 wells on acreage surrounding this lease block, each at flow rates greater than 2.5 million cubic feet per day, from the Mesa Verde sand, the major blanket resource zone being exploited in the Basin. Wells in this area are usually drilled on 10-acre spacing units.
Recently, Exxon disclosed plans to move 14 rigs to this project, build a town site for 600 personnel, and drill 1000 wells over the foreseeable future to exploit the reserves on these lands. Retamco also advised that Williams Co., a major US operator of pipelines, is in the final stages of completion of a 36" gas line able to transport large quantities of gas from this area beginning early in 2007. This pipeline is located in close proximity to the Barcus Federal Prospect, with available capacity. Authorization for expenditures (AFE's) are now being prepared.
About the Piceance/Uinta Basin
The Piceance/Uinta Basin, heart of the Rockies, is part of the most active gas production region in the US, where proven reserves and daily production rates now exceed the Gulf of Mexico, according to the Oil & Gas Investor (November 2006). Currently over 100 rigs are active in the Basin - 100% utilization.
"Consulting and research firm Wood Mackenzie says the top 34 E&P companies working in the region today could drill as many as 43,000 wells in Rockies in the next five years ... with planned expenditures of nearly $25 billion during that timeframe ... drawn by the vast reserve potential." (Oil & Gas Investor, November 2006).
"This Piceance/Uinta Basin Project represents another focused energy investment designed to provide both high impact and leverage to the expanding Dejour energy asset base. We are very pleased with the proposed activity on and adjacent to Company project lands and expect the value of this investment, both land and resource, to continue to escalate," quotes Robert L. Hodgkinson, Chairman & CEO.
R. Marc Bustin, Ph.D., P.Geol., FRSC, is the qualified person for Dejour's oil and gas projects.
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- Dejour Highlights '09 Results, Key 2010 Objectives (Apr 02)