Our report initiating coverage of Dejour Enterprises (DEJ) by Zacks Energy Analyst Richard R. Wolfe, CFA is now available at zacks.com and all major financial news services. Mr. Wolfe states, “We are initiating coverage at Neutral with a 12-month price target of US$1.01. Our recommendation reflects a very difficult industry context for natural gas; however, the situation could change quickly in terms of Dejour’s own particular prospects. We will be closely monitoring the company and will provide immediate coverage of corporate developments.”

Dejour is a development-stage oil and gas exploration company active in the British Columbia Peace River Arch play, the Colorado Piceance Basin and other North American locations. The company now has a prime opportunity in the Piceance Basin, where its 2,200-acre (72% working interest) position at Gibson Gulch, though undeveloped, is surrounded by a parcel of 8,000 net acres including developed and undeveloped properties that, in information made public in August 2009, will change hands for approximately $258 million.

Mr. Wolfe adds, “Our price target is derived from discounted cash-flow estimates of the intrinsic value of the company’s properties. On the basis of only the company’s present net asset value and without consideration of future cash flow from the development of its oil and gas leasehold inventory, the shares are undervalued by approximately 25%.”

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