Dejour Energy Inc. (NYSE MKT: DEJ / TSX: DEJ), an independent oil and natural gas exploration and production company operating in North America's Piceance Basin and Peace River Arch regions, announces that it has initiated natural gas production from the first two of four new wells at the Company’s flagship Kokopelli project. As previously disclosed, the four wells were to be completed in sets of two in the Williams Fork formation with eight frac stages per well. Halliburton (NYSE: HAL) has now completed the work under a turnkey contract arrangement and all four wells will be placed into production by the end of next week. In order to minimize the release of the hydrocarbons to the atmosphere, per Dejour’s policy of ‘green completions,’ each well’s production will be placed into sales as soon as the well is capable of flowing into the gathering system. Dejour’s liquids rich gas is transported and sold through gathering, processing and transportation arrangements with WPX Energy Inc. (NYSE:WPX) and Williams Energy Services LLC.
Combined sales of natural gas from our first two wells, which began at approximately 550 MCF/d has now increased steadily to 1500 MCF/d today, after only two days of additional clean up time. The wells will continue to clean up for at least two more weeks. The frac treatments on the second two wells have now been completed and flow back from those wells will begin early next week. Dejour expects it will take several more weeks before initial production rates can be released for the four wells.
“The success of this operation establishes Dejour as a new and significant long-term producer of rich gas reserves in the Piceance Basin and represents a major accomplishment for our Company. We are now focused on the further development of the Kokopelli liquid rich gas which may include testing the deeper Mancos/Niobrara high-pressure gas resource that we believe to be prolific in the eastern portion of the Piceance Basin,” says Hal Blacker, Dejour COO.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV