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• 2200 acres (1,571 net, 2 leases) in gas and liquids prone E. Piceance Basin, Colorado
• Bordering acreage owned or controlled by large cap US independents
• 2013, 4 well Williams Fork drilling program confirmed presence of Williams Fork gas and production rates consistent with 3rd party engineer's "type curves" for the area
• Results - increase in # of PUD Williams Fork drilling locations from 95 to 139
• New Williams Fork P+P reserves (January 1, 2014) - 28.7 MM BOE with a value of $104.1MM (disc @10%)
• All geological and geophysical work to date indicates possilble Niobara shale potential
• Infrastructure in place at "south" lease (10 mmcf/d sales line, water pits, access roads); development permits in progress for "north" lease
• New gas sales contract increases NGL "take" with nominal incremental cost
Dejour’s acreage is located adjacent to Barrett Resource lands that have seen significant recent drilling success and is sandwiched between Williams’s acreage which has been equally prolific. The Company’s acreage is adjacent to William’s Kokopelli field and almost certainly represents an extension of that field. To the west and adjacent to Dejour’s holdings is Barrett and William’s extension of the Mamm Creek field.
The main producing formations are the Cretaceous Williams Fork and the Illes Members of the Mesa Verde Formation. These are sediments once deposited in the lowlands next to, and lining, a shallow seaway that extended from the Gulf of Mexico to the Arctic Ocean. In the Gibson Gulch area these sediments are found at depths 4500 ft. to 8100 ft.
Deeper producing formations are the fine grained sediment and shale of the Mancos Formation, including the Frontier Formation sands and sands and silts of the Niobrara Formation. These formations are fine grained and have been considered too tight to effectively be produced until the recent revolution in drilling and completion technologies.
In the Gibson Gulch area, operators have been drilling and producing increasingly successful wells in these formations. Estimated ultimate reserves (EUR) for the Williams Fork formation (with abbreviated completion) are approximately 1.0 billion cubic feet of natural gas (BCF) per well based upon ten acre spacing.
DEJOUR. RESOURCE ENTERPRISING.