Dejour Enterprises Ltd. is a high growth oil and natural gas company operating multiple exploration and production projects in North America's Piceance /Uinta Basin and Peace River Arch regions. Dejour's veteran management team has consistently been among early identifiers of premium energy assets, repeatedly timing investments and transactions to realize their value to shareholders' best advantage. The company today announces record crude oil and natural gas output in May from the Woodrush Project located in the Peace River Arch in British Columbia, Canada. Gross project oil and gas production for the month was 31,580 BOE, a 332% improvement over the average gross monthly production of 9,500 BOE during the first quarter of 2010.
While the figures are impressive, it’s important that we identify the BOE calculation and what it means. Barrel of oil equivalent amounts have been calculated using a conversion rate of six thousand cubic feet of gas to one barrel of oil. The term "BOE" may be misleading if used in isolation. A BOE conversion ratio of one barrel of oil to six mcf of gas is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the well head. Total BOEs are calculated by multiplying the daily production by the number of days in the period.
Harrison Blacker, Dejour President and COO states, "The month of May has provided the Company with significant production improvement at Woodrush. Furthermore, additional project data accumulation leads us to believe that there is opportunity for further 'Halfway' and 'Gething' reserve expansion, with a long-term potential for recoverable reserve increase through water flood. This project is exceeding expectation and defining itself as an important long term contributor to the Dejour value equation." The Company plans to accelerate field development with additional oil drilling scheduled to begin in the third quarter of 2010.
The release of May’s record figures sent the share price jumping $.06, or about 21% to trade at $.35 per share on almost two and a half times average volume.
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