Dejour Enterprises is a high growth oil and natural gas company with an enviable portfolio of land assets in key regions of Colorado, Utah, British Columbia and Alberta. Since its inception, Dejour.s veteran management team has consistently been among early identifiers of premium energy assets, timing investments and transactions to realize their value to the best advantage of its shareholders.

Against a context of increasing concern about domestic energy production, as technology continues to make previously inaccessible resources available, and as natural gas proves to be an important stepping stone on the way to a .greener. energy future, Dejour is ideally positioned for significant value growth.

Junior Mining Stock Report recently conducted a one-on-one interview with Dejour.s chief executive Bob Hodgkinson. Mr. Hodgkinson has more than 30 years of experience in the resource and venture capital sectors.

Hodgkinson: I.ve been involved in investment business since 1974 and began underwriting junior securities with Canaccord Adams in 1979. I began drilling my own gas wells with drilling my own tax dollars in 1987. In 1989 I was funding a private company that was making some major discoveries in Alberta, then the president died and lo and behold, I was the biggest shareholder. So I took two years off from Canaccord to build this company and I never went back. I made a big discovery with some gentlemen from Lafayette, LA, in 1990; in fact we just drilled the seventeenth well in that Turtle Bayou Field and it.s doing over 20 million cubic feet of gas per day. That company was called Optima Petroleum and in 1997 I merged that with a private operating group in Lafayette to form a company called Petroquest Energy which today trades on the New York Stock Exchange and has been doing extremely well and is doing about 120 million cubic feet a day. I also had the opportunity in the early .90s to drill some acreage in Australia which led to buying some oil and gas assets in Indonesia which we packaged into a company that became known as Equitorial Energy. This was ultimately sold to the Esprit Trust for $450 million in 2005.

Hodgkinson: Dejour is my third public company in the energy game and we put it together in fall of 2004 as nothing but a TSX shell. At that time oil and gas markets were quite robust but the uranium market just coming out of 25 years of doldrums. So we began by purchasing lands in Saskatchewan which was the world.s #1 uranium production area at the time and we aised a lot of capital and developed dozens and dozens of drillable prospects there and in 2006 sold that entire thing to a company called Titan. That coincided with a real opportunity to enter the natural gas business in North American because natural gas prices had just cratered. And so we took that opportunity and we

Hodgkinson: We have made eleven conventional discoveries in northeastern B.C. and northwestern Alberta. Since the time we.ve made those four discoveries in Alberta the government changed royalty regime which has made production of oil and gas there, in my mind, less beneficial than it was before So we.re now conc entrating everything we.re doing in northeastern B.C. which has a good royalty regime and is very pro development of oil and gas. We.ve made a very interesting discovery in the Woodrush oil facility that we have now have. We have six wells producing four gas wells in the associated Drake field, one sour gas well through the Woodrush facility. The important thing there, though, is we.ve made a very significant oil discovery in a separate pool there. And the first well tested at over 650 barrels a day and has been producing over 375 barrels a day. It.s royalty free for three years because it.s a new pool discovery. We recently had to choke it back to 165 barrels a day to comply with government regulations until we develop the pool and can establish Good Production Practice (GPP) and probably waterfront capability. So our game plan for 2009 is to drill three more oil wells into that pool which covers about three sections of land which we have there. We also want bring those online before the end of 2009.

The nature of oil and gas environment is that drilling in a high-priced environment and competing in a high-priced environment means you have to get you have to get high-priced environment prices to make it pay. But with the downturn in prices we had actually held off drilling. We.ll actually be drilling these wells sometime in the summer in what we think will be a cost regime of less than two-thirds of what it will cost us to drill than the previous wells and we.ll be able to bring them online just after freezeup just after Christmas 2009 and have them in production early in 2010, like January 2. The upside to this whole thing is that a company called GLG in Calgary, an engineering consultancy are our consultants and they have given us some good reserves there but they.re not remotely as good as they should be. It.s up to us to prove the reservoir and prove the production by producing over time and get them to improve on the quantity that.s being obtained in that reservoir. And by drilling these three wells we think we can improve these reserves by a factor of at least eight and we think we can do that very quickly. This will really make a difference and will show the marketplace the upside value of our oil property there.

Hodgkinson: Yes. At the same time in the Piceance Basin area in western Colorado we did execute a farm-out to a very well heeled, financially deep private partnership called Laramie Energy II in the summer of last year on an oil project that we have on the edge of the Piceance Basin. We farmed out 22,000 acres to this company and they will begin drilling the first of four oil wells on this property for which we.ll be carried. Our deal with them is that they have to deliver four economically productive oil

Hodgkinson: In terms of proven reserves the Woodrush oil pool is probably the biggest. In the U.S. we have in western Colorado in the Piceance Basin we have 21 prospects in the heart of the Basin. Two of those we have been given very strong resource potentials by Norwest Questa, perhaps the best heeled engineering firm in this particular area. Those two landholdings we have involve 2,200 acres at Gibson Gulch in the middle of Bill Barrett.s most interesting production fields and several other private groups there and in fact is one of the best gas wells ever drilled in the Williams Fork was completed six months ago and doing better than three million cubic feet a day. Subsequent to that another group, Entarra, has made a major shale discovery about three miles north of us 2,000 feel below the Williams Fork, which is probably why Entarra has been calling us wanting to do a deal. Norwest Questa had given us somewhere between 192 and 530 billion cubic feet of gas recoverable eventually on our lands in this particular area. These aren.t reserves yet because we haven.t drilled them but in actual fact in 2009 we.ll be able to classify them as possible reserves because of the propensity of wells that have been drilled all around these lands.

The other area is called Rome Creek in which we have 1,400 acres at the base of the Rome Plateau, very accessible by road. Chevron recently completed five wells off the south end of our property. To the north Chevron has just completed 150 wells adjacent to the north end of our property and are laying pipelines across the edge of our property to put the product into pipe next fall. This makes our lands very prospective. We feel we have about 140 feet of net weight of Williams Fork gas pay there which would be equivalent to what both Chevron and Oxy have, so we know that this land has tremendous value. Those are three of the areas that we think have very high potential.

Hodgkinson: Yes. In fact the strategy that we have in the States particularly is that the natural gas in the Rocky Mountains has constraints. The good thing is there.s a lot of gas there. The even better thing is that the technology for getting that gas out with advanced drilling techniques is the best that it ever has been and wells produce better than they used to. It.s also an area where there.s a tremendous possibility for serendipity . multiple producing horizons. Even though the focus today has been on the Williams Forks. This is an area that is the home of the major companies: Exxon, ConocoPhillps ,Chevron and Oxy would be four of them. They have drilling budgets that don.t even change in today.s market from what it was a year ago. There used to be 104 rigs drilling in the Piceance Basin; there are only 33 now operated by the major companies. They.re idea is to just keep drilling . thousands and thousands of wells every year all on 10 acre spacing because that.s the nature of the Williams Fork reservoir and just keep hooking those wells up knowing at one point in time natural gas will be worth an absolute fortune and they.ll be there. These reserves that are found there are long life reserves, they.re 20 years plus. So the vagaries of short-term markets are taken out of the equation with these big guys.

However, this is not a place that juniors can fare very well unless they take a different approach. We bought the land package there in late 2006. The beauty about it is that we.ve been high grading it and had the opportunity of selling those gas wells in April of 2008 and taking our 25% working interest and raising it to about 72% working interest in what became 150,000 net acres there. The reason we did that is that we knew we had lands adjacent to everyone else.s business. This presents the best business opportunity in this particular basin which is to drill reserve proving wells on your own lands and be able to sell the multiple drill sites that you have on your own properties to the majors so it becomes a part of the drilling inventory for them in the future. We have at least 80 drill sites at Rome Creek; at Gibson Gulch we think we.ve got at least 250 drill sites. This is an alternative to drilling and proving and putting your own gas wells on line particularly during this period of pricing constraint partly due to local demand and partly due to lack of capacity for export from this area from this from pipe.

Hodgkinson: We have five separate business units in western Colorado. One of those is a joint venture we have in the Paradox Basin with Fidelity Resources. Fidelity operates about 3,700 wells in the Rocky Mountain region. Fidelity a number of years ago opened an office in Denver and decided to move into this area in the Paradox Basin known as Greentown, which is underlain by a gas shale called Cane Creek which is one of the most prolific gas shales in North America. It yields about six billion cubic per well. Frankly, Cane Creek hasn.t been significantly exploited either. Delta Petroleum is one of the frontier companies in this particular area. Fidelity and Delta are close to each other in the things they.re doing and right at this point are suffering some indigestion from being too aggressive in drilling expensive wells in this area. But they.ll do extremely well when the gas market is stronger. We have 25% of 14,000 acres in a joint venture with Fidelity. They paid over four times what we paid for our land there and we.re involved with exactly the same lands. We know we.ve got a huge value added; these leases are long-term. We probably won.t be drilling in this gas environment this year but certainly as 2010 comes we will. There are no problems with pipelines here because Fidelity owns part of the lines. So this is a program that we.re going to see happening and we think it could be very beneficial to us.

Hodgkinson: The only production we have is in northeastern B.C. in Canada. Our gas is marketed by Nexen Marketing and our oil sold to Pengrowth and Nexen depending on which particular project wehappen to be on. We get Canadian prices, so the lower the Canadian dollar in comparison to the U.S. dollar the more we benefit. On the other hand, the higher the U.S. dollar the higher the value of our U.S. land holdings in Canadian dollars, so it works both ways.

Hodgkinson: Our shares trade on the NYSE Amex under DEJ and also trades on the senior Toronto Stock Exchange under the symbol DEJ. We had a market cap last year of $200 million; we have a market cap today of less than $25 million. That.s what happened to the oil and gas business and that.s in an era where we went from zero to a thousand barrels of production. We trade actively in both markets. We.ve got about 75 million shares outstanding. As far as an institutional following we had a lot of institutions owning our stock but with the market downturn I think many of them bailed. However, we do have funds out of Dallas that are involved and funds out of Boston and I think there are funds out of Toronto beginning to buy our stock now. As insiders we own over twenty percent of our stock. In fact, we now know we probably have twenty-five to thirty groups that own one million shares each in addition to the insiders.

I.d also add that we put Dejour together in the oil and gas business because we chose to invest our own capital in the oil and gas business and we picked the land and property holdings we have particularly because we felt they would be a very large, unconventional resource that would be here for a very long term and our leases are designed that way. We have no drilling pressures whatsoever prior to the end of 2010. This is an investment for us in turning high quality oil and gas holdings into strong cash flows and reserves. Doing joint ventures is one way to do it where we don.t dilute our shareholdings particularly. We certainly are giving up some of the upside from the properties but the upside is so substantial that that represents the best return to the common shareholder. It.s also prudent capital management.

Hodgkinson: On the PowerPoint presentation on our website I.ve isolated some of the things that we know about. I.ve also mentioned some of the things that we haven.t been able to quantify. I think we.ve got over 800 million dollars in present value in reserve potential just in five or six of the projects we know. What we.re going to have to give up to get all those drills is another story if we don.t turn them ourselves. There.s also a lot more we haven.t quantified by virtue of the lands that we purchased in 2006. We paid about $25 million for at the time but are probably worth $35-$40 million now.

We operate two separate teams, one in Calgary and one in Denver. In Calgary we operate everything we do and we try to drill everything, although in this environment we.re farming out some things and you.ll see some deals done in the next little while. In the United States our emphasis is to farm everything out and in this natural gas and oil market that.s been a tough thing to do. But we.ve been contacted by some very sophisticated groups and we have some international interest in what we.re doing. So as soon as this market begins to move just a little bit I think you.re going to see some interesting joint ventures where groups are going to put up all the money to prove up some of these properties irrevocably and then we can really get going. I think what we.ve seen in these last nine or ten months was an aberration that was not a direct result of oil and gas business but a direct result of deleveraging policies that were put in place by the U.S. Treasury, Paulson, and Greenspan and Bernanke which caused ramifications far beyond what they thought would happen. That caused the hedge funds to have to bail out of its energy holdings and most of that was probably commodity holdings or derivati

Hodgkinson: They can visit our web site at