PRESS
RELEASE
DEJOUR
ENTERPRISES
LTD.:
TSX-V: “DJE”
FOR
IMMEDIATE
RELEASE:
November 1, 2006
Mr. Robert
L. Hodgkinson, Chairman and CEO of Dejour Enterprises Ltd. announces that the Dejour
Energy (Alberta) Ltd. (DEAL) joint
venture has purchased a 15% working interest in a high potential Noel area
natural gas project in British Columbia, Canada. DEAL is a joint venture,
executed in March 2006, with Charles W.E. Dove, a Dejour advisory board member
since November 2004 and previously a principal of Calgary based Dove & Kay
Exploration Ltd. The Joint Venture is owned 90% by Dejour and 10% by Mr. Dove.
This
natural gas exploration project is the first of several technically and
economically attractive opportunities expected to accrue to Dejour during this current
natural gas cycle. These projects are financially designed to utilize excess
Canadian flow through dollars to achieve net cash payback within 18 months of
production commencement at current gas prices, providing early stage cash flows
to supplement the Company’s capital expenditures on its core exploration
ventures, including the 275,000 acre natural gas resource and oil exploration project
in the Piceance/ Uinta Basins of Colorado and Utah.
Dejour will
drill a 3700 meter, 3-D seismic based Doig gas test well, earning 9.375%
interest in 2220 acres (899 hectares) in the Noel production area, prospective
for the recovery of at least 50 BCF of dry gas. At the Company’s option, it may exercise its
right to drill additional wells, each earning an additional 2220 acres. This project covers a total land block of
approximately 10,725 acres (4344 hectares). The Doig formation is a prolific producer in this
well defined natural gas region. This
vertical test is also prospective for production in the Cadotte, Fahler and
Cadomin zones, all well known productive horizons in the Noel area. Critical analysis of the 3-D seismic and
geology by DEAL’s Calgary based technical team, headed by geophysicist Charles Dove,
indicates the presence of highly porous Doig sand with geological closure of 3400
acres (1377 hectares).
Successful completion
of this test will lead to the drilling of 3 to 4 additional wells to the Doig
formation. An Initial production rate/well in the 5-8 mmcf/d range is typical
of this formation in the Noel area. Dejour estimates its portion of the D&A
cost of this test well is Cdn $ 700,000. Drilling operations should commence prior to
November 30, 2006, with drilling time estimated at 45 days. Greater development may ensue on these lands
should results of the first two wells enhance the interpreted size of the Doig
feature or show the presence of economic reserves in any of the up-hole horizons
mentioned.
Charles
W.E. Dove, B. Sc., P.Geoph. is the ‘qualified person’ for this project.
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