Enhanced Oil resources announces lease acquisition



    Listed: TSX Venture Exchange (Symbol: EOR)

    HOUSTON, Sept. 10 /CNW/ - The Board of Directors of Enhanced Oil
Resources Inc. (the "Company") is pleased to announce that the Company has
acquired an additional 34,300 acres of new leases within the St Johns
Helium/CO(2) field located in Apache County, Arizona. The award of these
leases is subject to final Arizona State Land Office approval of the
assignment from the five current lease holders to the Company's wholly owned
subsidiary Ridgeway Arizona Oil Corp.
    Included within this acquisition are 30,700 acres of new Arizona State
leases and 3,600 acres of existing federal leases located within the proposed
Unit outline for the St Johns Helium/CO(2) field. All leases delivered under
this agreement will contain an 83% Net Revenue Interest. In addition, the
Company is pleased to report that the Parties to this agreement have signed a
5 year non-compete with the Company and have agreed not to compete with the
Company on any future lease acquisitions within an area of mutual interest
that includes the entire St Johns Field limits.
    EOR Inc.'s President and CEO Mr. Barry Lasker reports "The Company is
very pleased to have consolidated the acreage position at St Johns. With the
added interest in CO(2) flooding and enhanced oil recovery in general we have
seen increased competition for leases within the St Johns field area. The
recapture of these leases confirms the Company's dominant position in the area
and will allow the Company to proceed with orderly development in a timely
manner. Together with our ownership of the Cottonwood Canyon Unit area in New
Mexico, the Company will control approximately 235,000 acres within the St
Johns Helium and CO(2) gas field."

    Enhanced Oil Resources Inc. is a development stage, enhanced oil recovery
(EOR), company that controls approximately 235,000 acres of land within the St
Johns Helium/CO(2) field in Arizona and New Mexico where the Company is
developing what is thought to be the largest undeveloped resource of helium
and carbon dioxide gases in North America. Independent engineering firms have
estimated that the St Johns field contains approximately 15 trillion cubic
feet of in place resources, with a potential recoverable resource of
5 trillion cubic feet. Development of the project could result in the Company
becoming one of North America's largest CO(2) suppliers and EOR producers. The
Company's strategic focus for CO(2) delivery and EOR production is the Permian
Basin where significant potential exists for enhanced oil recovery from
mature, depleted oil fields.

    ON BEHALF OF THE BOARD OF DIRECTORS

    "signed"

    Barry D Lasker, CEO

    THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

    %SEDAR: 00004538E




For further information:

For further information: Don Currie, 1-888-990-3551

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Enhanced Oil Resources Inc.

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