Dejour Enterprises Ltd.

Dejour Enterprises Ltd.

September 06, 2005 16:31 ET

Dejour to Drill Tinsley Deep Gas-Condensate Prospect in Yazoo County Mississippi

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 6, 2005) - Dejour Enterprises Ltd. (TSX VENTURE:DJE) -

Robert L. Hodgkinson, Chairman & CEO, 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 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 with indicated 4 way closure that could exceed 2400'.

The operator's combined reserve estimate for Smackover and Norphlet reservoirs exceed 633 BCF gas and 13.8 MMBO.

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 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, 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 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 or 28.21875% NRI BPO and 29.428126% WI APO 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 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


Shares Issued: 25,845,058

Last Close: 09/06/2005 - $0.60

Contact Information