Dejour Energy Inc. (NYSE: DEJ) has provided an update on field operations at its Woodrush oil production facility in Northern British Columbia and its Piceance properties in Western Colorado.
Peace River Arch, Northeast British Columbia:
The company reports that current February oil production is averaging 350 barrels of oil per day (gross) up more than 40% from the average oil production rate in 2012. Currently, gross field production is averaging 500 barrels oil equivalent per day. Dejour currently owns 75% of this production.
The focus of activity at Woodrush now is to improve on recent production levels while continuing to reduce monthly operating costs, according to the release.
Piceance Basin, Northwest Colorado:
At the company’s South Rangely project, the discovery well is online producing at the contract sales rate of 250 thousand cubic feet per day. The company plans include a review of expansion alternatives with a view to initiate the drilling of a hertz production well by mid-2014. Dejour maintains a 70% interest in the balance of this unit.
At the company’s 72% owned Kokopelli project, preparations are underway to drill and case three additional wells and complete four wells into pipe. All necessary permits have been issued for this phase of development. The drill rig has been contracted to move in on March 18, with an anticipated initial well spud on March 22.
Dejour, as operator, will be drilling 100% of these three new wells, in conjunction with the drilling fund capital previously announced.
WPX Energy (NYSE: WPX) successfully completed Lower Mancos (Niobrara) hertz producer, in Garfield County, that has averaged 12 million cubic feet per day of restricted flow production during the first 30 days. Additionally, WPX has announced its intention to drill two additional hertz wells in 2013. This is the 14th Mancos hertz to be drilled, completed and tested in the Piceance. Other Mancos hertz wells are in various stages of evaluation. The encouraging production results of these new wells indicate that the Piceance Basin recoveries, including the Niobrara/Mancos, offer the potential to at least double the net reserves available here, with improved economics. WPX has recently iterated that the Piceance continues to demonstrate that it is a ‘world class asset’ region, according to the release.
Dejour has over 7,500 net acres of land prospective for Niobrara/Mancos contingent resources in this Basin. This current WPX discovery is situated between Dejour’s Kokopelli and Roan Creek leaseholds.
Dejour Energy Inc. is an independent oil and natural gas E&P company headquartered in Vancouver, B.C.
