Enhanced Oil Resources Inc. Provides July Operations and Drilling Update
HOUSTON, TX, July 12, 2012 /CNW/ - Enhanced Oil Resources Inc. (TSX-V: EOR) is pleased to provide the following update regarding the Company's operations for July.
As previously reported, the Company's primary goals for 2012 are to add production and reserves through infill drilling at the Milnesand oil field, located in Roosevelt County, New Mexico, to evaluate the Chaveroo oil field for potential infill drilling and to further the planning and permitting of a 41 mile CO2 pipeline to connect Kinder Morgan's Cortez CO2 pipeline to our Milnesand and Chaveroo oil fields by September 2015.
At the Milnesand oil field, drilling of the MSU #522 infill lateral has been completed and the rig is currently moving to the MSU #141 well to commence drilling a 2,500 foot infill lateral there. The MSU #141 is expected to spud within the next few days. The MSU #522 well was drilled to a total drill depth of 7,250 ft. (4,570 ft. true vertical depth) after initiating the lateral component of the well at a drill depth of 4,880 ft. (4,632 ft. true vertical depth). The well was drilled through the Upper P3, P2 and P1 reservoirs and encountered oil shows, with fluorescence and cut, over an interval exceeding 1,100 ft. The well has been cased over the interval from 4,300 ft. to 7,250 ft. and will be acidized and stimulated over seven stages. The Company estimates that acidizing and testing will occur within the next few weeks.
Oil production volumes for June averaged 360 bopd, a decrease of 15 bopd from May. The reduction in production volumes for June is due to the Crossroads 102 well remaining offline for the entire month after remediation efforts failed to bring that well back to production. That well continues to be worked over and is expected to return to production in due course. As previously discussed, the Company began fishing operations at the Crossroads 303 well to retrieve a submersible pump that parted in the well in November. To date the Company has washed over and milled up approximately 20 feet (ft.) of the obstruction and is making progress towards retrieving the remaining nine ft. of pump. The Company continues to work on the 303 well and is confident that we will be successful in due course.
Mr. Barry Lasker reports "The drilling and evaluation of this first lateral well in Milnesand is an important step for the Company. We are extremely pleased with the drilling results to date and we look forward to evaluating the performance of this well in the near future. We will provide further updates as they become available."
About Enhanced Oil Resources Inc.
Enhanced Oil Resources Inc. is an oil and gas development company, with a principal goal of increasing crude oil and natural gas production through enhanced oil recovery ("EOR") and infill drilling projects it is initiating in the Permian Basin on oil fields acquired by the Company in 2007 and 2008 for that purpose.
Certain statements contained herein are "forward-looking statements" and "forward-looking information" under applicable securities laws, including statements regarding beliefs, plans, expectations or intentions regarding the future relating to Enhanced Oil Resources Inc.'s operations, business prospects, expansion plans and strategies.
Forward-looking information typically contains statements with words such as "intends", "anticipate", "estimate", "expect", "potential", "could", "plan" or similar words suggesting future outcomes. Readers are cautioned not to place undue reliance on forward-looking statements because it is possible that expectations, predictions, forecasts, projections and other forms of forward-looking information will not be achieved. Forward-looking statements are based on the opinion and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Although Enhanced Oil Resources believes that the expectations reflected in such forward-looking statements are reasonable, Enhanced Oil Resources can give no assurance that such expectations will prove to be correct. Assumptions upon which such forward-looking statements are based include that the Company will be able to carry out its proposed activities for 2012, that there will be accelerated development of our oil reserves, that production increases from our oilfields will be added, that our infill drilling program or specific wells will be completed as expected, that our workovers will successfully re-establish production in wells that are currently not producing or that we will complete the planning or permitting or complete the construction of a connecting pipeline by 2015. Readers should refer to Enhanced Oil Resources' current filings, which are available at www.sedar.com, for a detailed discussion of these factors, risks and uncertainties. The forward-looking statements or information contained in this news release are made as of the date hereof and Enhanced Oil Resources undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable laws or regulatory policies.
ON BEHALF OF THE BOARD OF DIRECTORS
Barry D Lasker, CEO
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASEFor further information:
visit our Website at www.enhancedoilres.com. or please call Don Currie on 1-888-990-3551.