GIBSON GULCH

Unique Williams Fork/Mancos Combination

  • 2200 acres surrounded by active players
  • Working Interest: 72%
  • Net Revenue Interest: 58%
  • Future Wells: 220, EUR's per well 3-5BCF of combined Williams Fork and Mancos production
  • Acreage is located at best structural position for both Williams Fork and Mancos production
  • Williams Co. (NYSE:WMB) purchased bordering acreage for $30,000+ per acre. Planning 150 wells adjacent to Dejour lands over next 3 years
  • Dejour permitting 2 wells for 2010: Objectives are developing up to 50BCF of reserves and holding acreage

Project Map

Dejour’s acreage is located adjacent to Barrett Resource lands that have seen significant recent drilling success and is sandwiched between Williams’s acreage which has been equally prolific. The Company’s acreage is adjacent to William’s Kokopelli field and almost certainly represents an extension of that field. To the west and adjacent to Dejour’s holdings is Barrett and William’s extension of the Mamm Creek field.

GibsonGulchMarch2010.jpg

Geology

The main producing formations are the Cretaceous Williams Fork and the Illes Members of the Mesa Verde Formation. These are sediments once deposited in the lowlands next to, and lining, a shallow seaway that extended from the Gulf of Mexico to the Arctic Ocean. In the Gibson Gulch area these sediments are found at depths 4500 ft. to 8100 ft.

Deeper producing formations are the fine grained sediment and shale of the Mancos Formation, including the Frontier Formation sands and sands and silts of the Niobrara Formation. These formations are fine grained and have been considered too tight to effectively be produced until the recent revolution in drilling and completion technologies.

WilliamsFork.jpg

In the Gibson Gulch area, operators have been drilling and producing increasingly successful wells in these formations. Estimated ultimate reserves (EUR) for the Williams Fork formation are approximately 1.5+ billion cubic feet of natural gas (BCF) per well based upon ten acre spacing. Estimated spacing EURs for the Mancos, including the Frontier and Niobrara Formations, are in the range of 1.5+ BCF per well with ten acre spacing. Current drilling and completion technologies will assure similar EURs for similar Williams Fork sections under the Dejour acreage.