Dejour Enterprises: A Growth Oil and Natural Gas Company

140,000 net acres of petroleum leases in premier N.A. production regions

Message: Zacks Adjusting Outlook for Dejour

Zacks Adjusting Outlook for Dejour

posted on Mar 23, 2010 11:40AM

Zacks Adjusting Outlook for Dejour

To All Interested Parties

Below is an "Analyst Blog" by Zacks’ Richard Wolfe published March 22, 2010 providing a coverage update regarding Dejour’s March 16, 2010 press release.

Said news release relates to the Company’s 2009 Piceance Basin Proven and Probable Reserves and can be found at

Adjusting Outlook for Dejour

By: Richard Wolfe, CFA
March 22, 2010 | Comments: 0
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DEJ: Year-end reserve assessment multiplies U.S. volumes

Dejour Enterprises
(DEJ - Analyst Report) on March 16, 2010 released results from Gustavson Associates, independent petroleum engineering consultants (Boulder, Colorado). Gustavson has credited the company (as of December 31, 2009) with 91 billion cubic feet (natural gas equivalent) of proved undeveloped reserves (net to Dejour) on the company’s key Gibson Gulch acreage in the Piceance Basin of Colorado.

These estimates were prepared in accordance with Canada’s National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities. US disclosure standards, revised recently by the SEC, are now more conservative than Canadian standards; however, these estimates, done by a US firm on US properties and affirming reserve quantities far in excess of the estimates we used in our 2009 report initiating coverage, have a disproportionate impact on the valuation of the company.

On a preliminary basis, and pending the release of SEC figures later this month, our earnings and cash-flow model is now showing a per-share valuation for the company ranging between USD 1.22 and USD 1.67. We will provide an update report once SEC figures and DEJ fiscal year-end financial statements are released.

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