Dejour Enterprises said that the casing operations of its third oil well (A-91-H) at its 6000 acre Woodrush project have been completed.

The flow lines have been connected to the main tank battery and the company has commenced light oil production at an initial rate of 150 barrels per day from the Halfway pool effective 28 October 2010.

Dejour is operator and holds a 75% WI in this project.

The company said that the completion of this well confirms a single Halfway reservoir with an estimated 1.35 million barrels of recoverable oil and with this confirmation, the application for a field wide water-flood has been submitted to the British Columbia Oil and Gas Commission.

The approval of this application is expected in four to six weeks and commencement of water injection is planned for 31 January 2011.

Dejour estimates that this water-flood will add more than 700,000 barrels of oil to the recoverable reserves from this single reservoir at a capital cost of $5 per barrel.

The company stated that with three wells now on line, productive capacity from this Halfway reservoir is currently more than 850 barrels of oil per day.

Dejour will continue to restrict production from this pool to conform with British Columbia’s allowable well production limits until the water-flood has been implemented.

The company has planned an additional injection well and possibly one additional producing oil well to be added to the reservoir at the time of the water-flood start up.