Dejour Energy Ties in Initial Production at its 77% WI South Rangely Discovery
Initial U.S. Based Liquids-Rich Production Secures Unitized Leasehold
DENVER--(BUSINESS WIRE)-- Dejour Energy Inc. (NYSE MKT: DEJ / TSX: DEJ), an independent oil and natural gas exploration and production company operating in North America's Piceance Basin and Peace River Arch regions, today announced that it has commenced production at the Company's South Rangely leasehold from its successful discovery well drilled in Q4 2011. On initial test the well flowed rich gas at rates in excess of 400 MMCFD. Dejour maintains a 30% WI in the discovery, but holds a 77% WI in the balance of the unitized 6300 acre leasehold. Dejour and its partner will now focus on the Hz production potential for oil that has been encountered in a down dip extension of the same Niobrara formation south of this leasehold.
"Production at South Rangely signifies the execution of an important component of our 2012 strategic plan. We committed in Q1 2012 to unitize relevant acreage associated with this Dejour operated leasehold and have achieved this milestone. South Rangely represents the Company's first U.S. based production. This well will not only contribute incremental revenue but secure the leasehold and set the stage for future development collaborations in this developing play," says Hal Blacker, Dejour COO.
Dejour Energy Inc. is an independent oil and natural gas exploration and production company operating projects in North America's Piceance Basin (approximately 130,000 net acres) and Peace River Arch regions (approximately 10,000 net acres). Dejour's seasoned management team has consistently been among early identifiers of premium energy assets, repeatedly timing investments and transactions to realize their value to shareholders' best advantage. Dejour maintains offices in Denver, USA, Calgary and Vancouver, Canada. The company is publicly traded on the New York Stock Exchange MKT (NYSE MKT: DEJ) and Toronto Stock Exchange (TSX: DEJ).
Statements Regarding Forward-Looking Information: This news release contains statements about oil and gas production and operating activities that may constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities legislation as they involve the implied assessment that the resources described can be profitably produced in the future, based on certain estimates and assumptions. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those anticipated by Dejour and described in the forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, adverse general economic conditions, operating hazards, drilling risks, inherent uncertainties in interpreting engineering and geologic data, competition, reduced availability of drilling and other well services, fluctuations in oil and gas prices and prices for drilling and other well services, government regulation and foreign political risks, fluctuations in the exchange rate between Canadian and US dollars and other currencies, as well as other risks commonly associated with the exploration and development of oil and gas properties. Additional information on these and other factors, which could affect Dejour's operations or financial results, are included in Dejour's reports on file with Canadian and United States securities regulatory authorities. We assume no obligation to update forward-looking statements should circumstances or management's estimates or opinions change unless otherwise required under securities law.
BOE Presentation: Barrel of oil equivalent amounts have been calculated using a conversion rate of six thousand cubic feet of gas to one barrel of oil. The term "BOE" may be misleading if used in isolation. A BOE conversion ratio of one barrel of oil to six mcf of gas is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the well head. Total BOEs are calculated by multiplying the daily production by the number of days in the period.
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KEYWORDS: United States North America Canada Colorado
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