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Dejour's Mancos discovery at Kokopelli flows over 8 million ft3/d

Oilfield Technology,

Dejour Energy Inc., an independent oil and gas exploration and production company operating in North America's Piceance Basin and Peace River Arch regions, has announced an operational update for its flagship Kokopelli project.

As previously reported, on Kokopelli Pad 21B, Dejour and its operating partner successfully drilled, cased and completed a single vertical 13600' Mancos discovery well (Federal 14-15-7-21) and seven Williams Fork (WF) wells (Federal 14-15-1-21 through Federal 14-15-8-21) as contemplated in the original 2014 drill program. The deep Mancos discovery well completion incorporated 14 stages to best assess the multi-zonal potential of the leasehold.

Immediately upon drilling out the bridge plugs, the Mancos well flowed at over 8 million ft3/d (approximately 1300 boe/d) with over 4000 psi casing pressure. A historical review of all the vertical Mancos wells in the Basin indicates that the Federal 14-15-7-21 is among the better vertical wells drilled to date. The well has been temporarily choked back to best analyse and align gas composition with current delivery systems. The seven WF wells are now collectively flowing an additional 6 million ft3+/d plus liquids with at least 60% of completion fluids yet to be recovered.

Stabilised production rates for all eight wells will be reported during the current quarter. Based on preliminary data, the Company is confident in its forecast of adding at least 500 boe/d in production profile to its working interest for this set of wells.

Dejour owns a 25% working interest in this multi-zonal production project. The ~2200 acre Kokopelli project could potentially host over 50 vertical Mancos wells in addition to 200 WF wells. A new independent engineering evaluation incorporating this Mancos reserve addition is expected to be available post YE 2015.

"The robust pressures and flow rates of this Mancos discovery well at Kokopelli exceeded our expectations and validates our commitment to the Piceance Basin. Coupled with the continual build in the flow rates of the new WF wells, we are confident that these successful operations have dramatically enhanced both Dejour's long term production profile and reserve value," stated Robert L. Hodgkinson, Chairman & CEO.

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