Dejour Gibson Gulch Value Substantiated by Williams Co. Purchase of Piceance Properties
DENVER, Aug 17, 2009 (BUSINESS WIRE) -- Dejour Enterprises Ltd. (NYSE-AMEX: DEJ/TSX: DEJ)
On August 10, 2009 Williams Company (NYSE:WNB) announced the acquisition of developed and undeveloped properties for approximately US$258M. Management of Dejour believes, as a result of this acquisition, it can now substantiate the quality and the value of its 2,200 operated acres (72% working interest) in the same region of the Piceance Basin. Dejour has confirmed through multiple sources that the acreage purchased consist of Orion Energy Partners' Kokoppelli Development located on the northern boundary of Bill Barrett Corporation's Gibson Gulch Field. Dejour's Gibson Gulch project is located entirely within the geographic boundary of the 9,000 gross acre (8,000 net) core area of this purchase.
"Depending on how you apportion the value of the property acquired by Williams, we believe the purchase sets the current market value for the Dejour operated interest in this field somewhere between US$40M and US$80M. More importantly, it independently substantiates our internal studies of the area showing a fully developed PV-10 after tax value for the Dejour operated leases of approximately US$400M based on a 10-acre Williams Fork development. We also recognize a probable resource in the Mancos shale beneath these leases that when fully developed could be of equal or greater value than the Williams Fork" stated Hal Blacker, President of Dejour USA (Corp).
Chairman & CEO, Robert L. Hodgkinson remarked, "We have been anticipating a change in the operator of the Kokoppelli Field during this period of low natural gas prices and we are very pleased to have a company the quality of Williams, with their technical and financial muscle taking the lead role in the area. With an expected increase in the price of natural gas in 2010 and 2011, we believe now is the time to begin the full development of the prolific Williams Fork resource under these leases. We also believe that the economics of this development, when combined with the deeper Mancos gas potential now emerging in this portion of the Piceance, will compete favorably with any other natural gas production resource in the country."
About Dejour
Dejour Enterprises Ltd. is a high growth oil and natural gas company operating multiple exploration and production projects in North America's Piceance / Uinta Basins (128,000 net acres) and Peace River Arch region (22,000 net acres). Dejour's veteran 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. Since April 2008, the company has developed production of over 1,000 barrels of oil equivalent daily from less than 2000 of its 150,000 net acre land base. This growth rate is prudently expected to continue.
Dejour, headquartered in Vancouver, Canada, maintains operations offices in Denver, Colorado and Calgary, Canada. The company is publicly traded on the New York Stock Exchange Amex (NYSE- Amex: DEJ) and Toronto Stock Exchange (DEJ).
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