The company said that the project design has been completed and construction will begin in early January.

The project in northeastern British Columbia includes the drilling of a water supply well, converting one producing well to injection and drilling a second injector, upgrading power generation, and installing pumps, additional tankage and water treatment facilities at a gross cost of $3.2m.

Water injection is expected to commence in early February, resulting in an immediate increase in production as the new pool rules take effect and the current British Columbia well production allowable scheme is phased out.

Production from the pool is projected to increase throughout the year with peak response to water injection expected in the third quarter of 2011.

Dejour Enterprises is an oil and natural gas company operating multiple exploration and production projects in North America’s Piceance Basin and Peace River Arch regions.