Dejour Primed for Piceance/ Uinta Basin Natural Gas
Resource Project
Dejour
Enterprises Ltd. (TSX.V-DJE; OTC-DJEEF; FRANKFURT-D5R)
Shares Issued: 50,994,722
Last Close: 6/21/2006 – CDN $1.46
June 22, 2006 – News Release
Robert L. Hodgkinson,
Chairman & CEO, is pleased to announce that Dejour plans to submit to the TSX
Venture Exchange this week the required National Instrument 51-101 report
(Standards of Disclosure for Oil and Gas Activities) for the Piceance/Uinta natural
gas resource project. The 51-101 report, authored by Ryder Scott Company, Petroleum
Consultants, is based on the acquisition of 267,152.29 total gross acres
(254,640 net), including an additional 14,104 net strategic acres, in the
Piceance/Uinta Basins pursuant to its agreement with Retamco Operating Inc.
originally announced on May 11, 2006. The Company has a binding Letter of
Intent, subject to regulatory approval, with Retamco, a private Texas
corporation, to own and participate in the drilling of this large accumulation
of conventional and unconventional oil & gas leases located in the Piceance/Uinta
Basins of western Colorado and eastern Utah. These basins hold one of the
largest natural gas resource/ production reserves in North America.
This
is a tremendous opportunity for Dejour, comprising of two distinct project
types involving roughly 267 leases covering 18 geological prospects within
these basins.
Key highlights
of the Piceance/Uinta Basins are:
·
6000 + square miles estimated to contain more than 300
trillion cubic feet of conventional and unconventional gas in place and as much
as 3 billion barrels of oil
·
Established resource, with significant deeper exploration
upside
·
Low political, economic and development risk
·
Repeatable drilling play utilizing the latest
completion techniques that provide for 60-80% recovery rate per well, estimated
at 100bcf/section
·
Multiple wells per location, effective drilling
economies of scale
·
Well advanced pipeline network, growing with capacity
·
Largest natural gas resource play in the mainland US that
has attracted major industry players i.e. Encana, ExxonMobil, Chevron, The
Williams Co., Bill Barrett Corporation, Conoco-Phillips
·
Dejour land position creates significant beneficial shareholder
leverage
The
project consists of two types. The “Natural Gas Resource” project is a well
defined stratigraphic gas resource, covering over 198,561.2 gross acres (188,422.47
net) of leases that include low geologic risk natural gas assets plus the
opportunity for deeper Jurassic reserves. The second project is a massive deep “Overthrust
oil” project covering 68,591 gross (66,218.2 net) acres of leases in the northern
Piceance/Uintah Basins with a high reward potential and commensurate risk. This
project is a deep seated oil prospect with the geological potential to contain
up to 3 billion barrels of oil, directly analogous to the Rangeley field
located immediately adjacent, having produced over 1 billion barrels to date.
Dejour
will acquire a 25% net working interest in the “Natural Gas Resource” project
and a minimum 12.5% net working interest in the “Overthrust Oil” project. Leasehold acreage will have a minimum 80% net
revenue interest. Dejour will pay its proportionate share of all exploration
expenses including seismic, drilling, completion or abandonment and equipping
for a minimum 25% working interest in the entirety of the “Natural Gas Resource”
project, and similar proportional costs for a minimum 12.5% working interest in
the “Overthrust Oil” project.
Total
land cost to Dejour now totals US $22,153,157, comprising US $5 million cash
and 5,500,000 common shares valued at US $10,726,700 ($2.17 per share) payable
at closing, with the assumption of a US $5,000,000 zero coupon note maturing
December 31, 2006. Dejour is adequately funded to fulfill its financial obligations
pursuant to this agreement. It has been agreed that the additional land costs
will be settled with Retamco through the issuance of a two year debenture (US
$1,426,457) convertible at US$1.35 per unit, bearing an 8% coupon, payable
quarterly, subject to exchange approval.
Each unit consists of one common share and one share purchase warrant
exercisable at US $1.50 per share.
Working
interest and operator partnerships are currently being finalized. Dejour
expects drilling to commence early in Q4 of 2006.
For
further information regarding the Piceance-Uinta Basin please refer to: http://www.dejour.com/news/DJE_Piceance_Fact_Sheet.pdf
About Dejour
Dejour Enterprises
Ltd. is a Canadian energy company focused on exploration and development of
uranium and oil & gas while leveraging opportunities that exist as a result
of the global market’s decreasing conventional supply and increasing demand for
energy. The Company is listed on the TSX
Venture Exchange (DJE.V), OTCBB (DJEEF), and Frankfurt (D5R). Dejour is a reporting
issuer to the SEC. Refer to www.dejour.com
for company details or contact the Office of Investor Relations at investor@dejour.com
Statements in this release that
are forward-looking statements are subject to various risks and uncertainties
concerning the specific factors disclosed under the heading “Risk Factors” and
elsewhere in the Corporations’ periodic filings with Canadian securities
regulators. Such information contained herein represents management’s best
judgment as of the date hereof based on information currently available. The
corporation does not assume the obligation to update any forward-looking
statement.
The TSX Venture Exchange does not
accept responsibility for the adequacy or accuracy of this news release.
Robert L. Hodgkinson, Chairman &
CEO
DEJOUR ENTERPRISES LTD.
Suite
1100-808 West Hastings Street, Vancouver, BC V6C 2X4
Phone:
604.638.5050 Facsimile:
604.638.5051 Email:
investor@dejour.com