Dejour Energy Inc. (NYSE MKT: DEJ), an independent oil and natural gas exploration and production company operating in North America's Piceance Basin and Peace River Arch regions, updates current development progress underway at the Kokopelli Project.
The 'conductor' rig has completed the setting of 20” casing for eight new production wells and one water disposal well on Pads 21A and 21B at Kokopelli.
The Frontier-28 rig is currently moving to Kokopelli from Wyoming and is expected to rig up for the drilling of the water disposal well early next week on pad 21A. The estimated time to drill and case the 8900’ well to the Cozzette near the base of the Williams Fork is 10 days.
Following the casing of the water disposal well the rig will move to Pad 21B where it will begin to drill the first of eight production wells: seven Williams Fork and one Mancos well. The project is currently on schedule.
Dejour maintains a 25% working interest in the Kokopelli Project and is carried for 25% of the first US$16 million in expenditures. Additional development information will be provided as available.
The company has $2mm+ cash on hand and credit facilities sufficient to fund the balance of its entire 2014 capex program.
"The successful development of a predictable, long-term revenue stream from multiple zones at Kokopelli would represent a significant milestone for Dejour. Beyond the potential impact to our PDP reserve value and corporate cash flow, this 2014 campaign sets the foundation for building both an efficient and substantial liquids-rich natural gas producing operation. But this remains only the early stage of the Kokopelli plan as we look to further expand production on the southern lease in 2015 and include operations to prepare the northern lease for 2016 drilling. With improved project economics and a de-risked engineering profile, we anticipate that the Kokopelli Project can become a highly attractive Piceance producer," states Robert Hodgkinson, CEO.
Dejour maintains offices in Denver, Calgary, Alberta and Vancouver, British Columbia.
Recommended Reading
SAF End-users, Producers Talk Challenges, Solutions
2024-02-07 - The lower lifecycle emissions of sustainable aviation fuel are seen as a key lever for airlines to reduce carbon emissions, but cost is a challenge.
Column: There’s Methane to Our Madness
2024-01-30 - The EPA’s methane rule will likely face resistance—but it shouldn’t.
Qnergy Tackles Methane Venting Emissions
2024-03-13 - Pneumatic controllers, powered by natural gas, account for a large part of the oil and gas industry’s methane emissions. Compressed air can change that, experts say.
SEC Adopts Climate Disclosure Rules in 3-2 Vote
2024-03-06 - The regulation requires companies to disclose Scope 1 and 2 emissions, weather-related risks and other climate-related data that could have a material business impact.
MethaneSAT: EDF’s Eye in the Sky Targets E&P Emissions
2024-03-07 - The Environmental Defense Fund and Harvard University recently launched MethaneSAT, a satellite tracking methane emissions. The project’s primary target: oil and gas operators.