Dejour Energy Inc. (NYSE AMEX: DEJ / TSX: DEJ) (“Dejour” or the “Company”), an independent oil and natural gas company, announced today that the vertical test well drilled at the South Rangely was successfully completed, fracture stimulated with 100,000 pounds of proppant and flow tested during late December 2011 at a consistent rate of 315 MCF per day for more than 10 days with zero decline in production or pressure.
The South Rangely leasehold is thought by Dejour to be a Mancos "C" (Niobrara) type resource play most suitable for Hz well development. The results of this vertical test have confirmed a trapped hydrocarbon presence in commercial quantities and opened up all of Dejour's remaining South Rangely acreage to lower risk exploration down structure from this gas accumulation. The Company and its partners will focus on the oil leg that is typically found down dip from similar gas accumulations in the Mancos "C" in this area. An action plan to efficiently exploit the 6,750 acres of gross leasehold operated by Dejour will be announced early in Q2-2012.
States Hal Blacker, Dejour COO, "We are encouraged by both the thickness of this Mancos “C" sand and the productivity after stimulation from this vertical well bore. We see considerable potential down dip for an oil leg in this thick accumulation. Dejour will immediately begin working with the BLM to secure additional drill permits and with partners and offset leaseholders to create a drilling unit to facilitate an orderly and efficient exploitation of this discovery.”
“With the success at South Rangely, our plan now is to move tactfully to increase our US PDP reserve value beginning with the exploitation of both Gibson Gulch and South Rangely in 2012. This plan includes testing the exploration potential of other significant prospects within the balance of our 107,000 acre US land portfolio with a focus to expand oil and liquids production," Blacker concluded.
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