Mr. Robert Hodgkinson reports
DRILL RIGS MOVE INTO DEJOUR S KOKOPELLI PROJECT
Development
operations for 2014 are under way at
Dejour Energy Inc.'s Kokopelli project.
New drill pad 21B has been completed, including gas connection
(please refer to the company's website for media), and drill pad 21A has been
augmented to accommodate the drilling, equipping and utility of a water
disposal well that will prove a significant economy to existing water
disposal arrangements.
A Peter Martin "conductor" rig is engaged to complete the "rat holes"
with 20-inch casing for eight new production wells and one water disposal
well prior to the Frontier-28 rig moving in for sequential total-depth
drilling operations in mid-September.
The 2014 drill program is focused on developing significant new
production from the liquids-rich Williams Fork formation (based at
8,400 feet) and testing for production from the Mancos reservoir, in
particular, the commerciality of deep Niobrara strata (estimated to base
at 12,750 feet).
As previously reported, Dejour is fully carried for 25 per cent of the first
$16-million (U.S.) in expenditures to maintain its 25-per-cent working interest in
the Kokopelli project. The final project budget (authorities for
expenditure) should be completed shortly.
"We are pleased with this drill program profile at Kokopelli, as we
anticipate the advent of large volumes of new gas, condensate and NGL
[natural gas liquid] production moving into well-contracted sales lines during the peak
seasonal commodity pricing regime. This production ramp, combined with
the opportunity to test and produce the high-pressure, rich Niobrara
strata of the Mancos this season, makes this drill program by far the
most important for Dejour to date. A successful campaign is expected to
contribute significantly to the expansion of Dejour's PDP [proved developed producing] reserve value
and production base, further derisk the engineering profile, and improve
project economics. Dejour is now poised to see Kokopelli become a
significant liquids-rich multizonal producing field," stated Robert L.
Hodgkinson, chairman and chief executive officer.
We seek Safe Harbor.
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