Dejour Enterprises Ltd. has signed a Letter of Intent with a NYSE listed E&P company to create an exploration Joint Venture (JV) based on certain of Dejour's Canadian landholdings.

Terms of the initial JV, when finalized, will include an option payment to Dejour to a maximum of $1mm tied to Dejour's achievement of specific objectives in Q1 of 2011. Upon satisfactory achievement of initial objectives, it is contemplated that the JV will fund land purchases up to $5mm on a 65/35 basis (US Oilco/ Dejour) to be followed by the funding and drilling of two horizontal wells (combined $9mm estimate) on an 80/20 basis (US Oilco/Dejour). As contemplated by the agreement, US Oilco and Dejour would continue to develop the project on an ongoing 50/50 basis beyond the earning period.

COO Hal Blacker states,'We are pleased to partner with a US company that recognizes the exploration potential of our Canadian landholdings and is committed to covering the majority of early stage development expenses. Success in the ensuing tests could create another significant leap in the value of Dejour's Canadian hydrocarbon reserves and enhance shareholder value. We expect to complete phase one of the JV program in 2011 with total capital exposure by Dejour estimated to be less than $3.5mm."

Tags: Dejour Enterprises Ltd.