Dejour Forecasts Increase in Peace River Arch Reserves
Dejour Enterprises Ltd. has announced an update to its National Instrument 51-101 compliant reserves and pre-tax cash flow estimates from selected Peace River Arch projects.
A Reserve Assessment and Evaluation of Select Oil and Gas Properties Report prepared by Calgary based GLJ Petroleum Consultants, as of June 30, 2008, provides the following revisions to their previous report, effective December 31, 2008. All figures are reported in Canadian dollars.
Reserve Values are based on GLJ 2008 Price Deck Forecast, and highlights include Total Proved and Probable Reserves set at $58.2 million as of June 30, 2008, up from $3.27 million as of December 31, 2007.
Canadian operation has added considerable oil reserves to benefit from high oil prices while continuing development of its natural gas projects. This has resulted in an increase from 5% NGL’s / 95% Natural Gas, to 53% Light and Medium Crude Oil and NGL’s (Natural Gas Liquids) / 47% Natural Gas.
"Currently four of the ten wells tested and independently evaluated for production are on stream. The balance is being prepared for production in Q3-08, with design capacity to accommodate the next round of development. One of the 2008 oil discovery areas has a current 2P valuation of approximately $40MM based on primary recovery and restricted initial production rates. However, a nearby analogous pool has already shown a 100% plus increase in estimated ultimate oil recoveries (EUR's) through the utilization of secondary recovery techniques. Dejour has commenced design work to utilize these techniques, when appropriate, to further raise its EUR from this pool. As Dejour's other discoveries are brought on stream in Q3 2008, development plans will be finalized for the upcoming fall and winter," said Charles Dove, President of Dejour Energy, Alberta.
Robert Hodgkinson, Dejour Chairman and CEO commented, "GLJ's revised valuation of 2P Reserves has grown 2.97 times from Q4, 2007. This, combined with higher prices for energy and the increase in bias towards oil, is responsible for pre-tax cash flow estimates much better than previously anticipated. The Company's Peace River Arch projects have now proven to be an excellent platform for Dejour to initiate extensive resource exploitation programs on over 143,000 net acres of oil and natural gas leases well positioned in key US Rocky Mountain and NE BC / NW Alberta energy regions."
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