Dejour to Drill Tinsley Deep Gas-Condensate Prospect in Yazoo County Mississippi.VANCOUVER, British Columbia -- Dejour Enterprises Ltd. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension VENTURE:DJE) - Robert L. Hodgkinson, Chairman & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , reports the Company has purchased a 43% interest in the Tinsley Deep Gas Prospect located in the central portion of Yazoo County Mississippi. The prospect includes 5,225 gross acres and 4,786 net acres covering all rights below the base of the Hosston Formation (Jurassic system). The operator proposes the drilling of a test well to 12,000' in the 4th quarter of 2005 sufficient to test both the Smackover and Norphlet formations which appear on 45 square miles of excellent quality 3D seismic data to be draped drape v. draped, drap·ing, drapes v.tr. 1. To cover, dress, or hang with or as if with cloth in loose folds: draped the coffin with a flag; a robe that draped her figure. over the entirety of a large Louann age piercement salt dome. The initial well will be drilled on the up thrown side of a down to the north faulted anticline anticline: see fold. with indicated 4 way closure that could exceed 2400'. The operator's combined reserve estimate for Smackover and Norphlet reservoirs exceed 633 BCF BCF Billion Cubic Feet BCF Bioconcentration Factor BCF British Chess Federation BCF British Coatings Federation BCF Breast Cancer Fund BCF Bank Credit Facility BCF Bulked Continuous Filament BCF British Cycling Federation BCF Boeing Converted Freighter gas and 13.8 MMBO MMBO Million Barrels of Oil . The Tinsley Field was discovered in 1939 by Union Producing Company and has produced over 400 Million Barrels of Oil to date from higher up Cretaceous formations. The highly over pressured Deep Smackover Gas Trend of west-central Mississippi, which exhibits porosities between 8-15%, has produced almost a trillion cubic feet of gas including the state's most prolific gas well, which alone has produced over 139 BCF gas over two decades and is still producing at significant commercial rates. The Tinsley Prospect represents a unique opportunity for Dejour. The rights originally developed and held by Union Producing Company, later becoming Pennzoil Exploration and Production Company, were subsequently sold to Devon. In 2000 Devon retained an independent petroleum consultant to evaluate the merit of deeper (Jurassic) formations. That independent consultant stated: "We recommend... the drilling of a 12,100 feet well ...to test the Norphlet sandstone in a large closure upthrown on the main down-to-the-north Tinsley fault. We estimate the Norphlet will be encountered 2,400 feet structurally high to the Conoco Childress No. 1, a well that had mud log gas shows from 70 feet of low permeability Norphlet sandstone. The Norphlet should be 2,000 feet high to the Jones Berry No. 1 and Nannie Berry No. 1 wells that both tested sweet gas at low rates from the Norphlet. The prospect closure encompasses over 4,600 acres and has reserve potential of 184 BCF of gas." The Consultant further reported: "Since most of the downdip penetrations have greater than 100 feet of net Norphlet sand the reserve potential could exceed 250 BCF. The possibility of finding prolific Norphlet sands on a closure this large and pronounced makes this a very attractive exploration opportunity. The primary risks are sand quality and fault seal." Before taking action on the recommendation report, Devon sold its Tinsley interests to Merit Energy Company Merit Energy Company is one of the largest privately held oil and gas companies in the world, with some $1.0 billion (U.S.) in net income on $1.67 billion in revenue. The company was formed in 1989 by William K. Gayden, formerly of EDS and Petrus Oil and Gas L.P. , a large independent funded by Harvard and Stanford trusts. Merit, due to it trust obligation, is unable to incur exploration expenditures. Dejour will pay an unpromoted 43% of its share of acquisition costs (land, brokerage, seismic and processing), being $250,389 USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. plus an estimated $1,287,406 USD for drilling and abandonment costs (1/3 for a 1/4 basis) to earn in the initial well a 34.9375% WI BPO BPO Business Process Outsourcing BPO Benevolent & Protective Order (of Elks of the USA) BPO Benzoyl Peroxide BPO Business Process Optimization BPO Broker Price Opinions BPO Buffalo Philharmonic Orchestra or 28.21875% NRI NRI Nomura Research Institute (Tokyo, Japan) NRI Non-Resident Indian NRI Natural Resources Institute NRI National Resources Inventory NRI Networked Readiness Index NRI Natural Resources Inventory NRI National Research Institute BPO and 29.428126% WI APO apo- 1 A prefix indicating a protein component in a conjugated molecule–eg, apoferritin, apolipoprotein, see there 2 Apolipoprotein, see there or 25.237268% NRI APO. Dejour would pay its earned interest of completion costs estimated at $370,285 USD. Dejour intends to reduce its exploration risk in the Tinsley Prospect through farm-out, while maintaining at least a 25% WI. About Dejour Enterprises Ltd. Dejour Enterprises Ltd. is a Canadian energy exploration and development company whose mission is to provide superior shareholder value by acquiring and developing unique and rewarding opportunities within today's burgeoning energy markets. The Company is listed on the TSX Venture Exchange TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. under the symbol (DJE.V). 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. Robert L. Hodgkinson, Chairman & CEO DEJOUR ENTERPRISES LTD. Shares Issued: 25,845,058 Last Close: 09/06/2005 - $0.60 Dejour Enterprises Ltd. (TSX VENTURE:DJE) |
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