HOUSTON, Oct. 17 /CNW/ - Enhanced Oil Resources Inc. (TSX-V: EOR)
announced today the Company has completed the acquisition of approximately
1900 acres of productive land adjacent to the Milnesand San Andres Unit
currently 100% owned by the Company. The acquisition covers the southern
limits of the Milnesand San Andres Oilfield and will be a logical later stage
step-out to the Milnesand CO2 pilot flood. The Company estimates the 1900 acre
addition contains approximately 24 million barrels of oil in place (OOIP),
only 10% of which is estimated to have been produced to date. Enhanced Oil
Resources paid US$436,000 with a July 1, 2008 effective date.
"Enhanced Oil Resources is pleased to add the final piece of the
Milnesand field to our stable of enhanced oil recovery targets at a very
reasonable price," Barry Lasker, Enhanced Oil Resources President and Chief
Executive Officer said. "Success at our ongoing Milnesand CO2 pilot flood
should allow the Company to book additional Proved Undeveloped (PUD) reserves
to our resource base. Moreover, the acquisition is accretive to current cash
flow as it increases the Company's current daily production to approximately
190 barrels of oil."
The Company is completing week 7 of the Milnesand CO2 pilot flood,
injecting approximately 400 mcf per day of CO2 into the target area. Early
results are consistent with our modeled results.
The Company and its pipeline partner, Suncoast Energy, continue
discussions with parties interested in CO2 supply from our St. Johns project.
Interested parties have been directed to submit Letters of Intent (LOI) to the
Company in the coming weeks. Upon closing of the LOI deadline, the Company
will begin the process of securing definitive capacity contracts. While the
Company cannot predict the outcome of the formal contracting process, early
indications of interest are encouraging.
The Company's cash balance at September 30th is approximately
$ 15 million and should be satisfactory to complete development plans and fund
firm capital expenditures over the next 12 to 18 months under current
conditions. In addition, as part of the 2009 budgeting process, the Company is
conducting a careful review of all overhead expenses to assure maximum
operating efficiencies, focusing maximum capital on its emerging operating
Lasker continued: "We are pleased with the ongoing operations at the
Milnesand CO2 pilot flood. We continue to make significant progress on our
goal to secure long term CO2 contracts for delivery into the Permian Basin for
enhanced oil recovery projects." He concluded "With our current production
covering a substantial part of our overhead, we continue to direct more
capital to our development activities. Given current operating parameters, we
believe our current cash position provides enough capital to fund our ongoing
development activities for the next year."
About Enhanced Oil Resources
Enhanced Oil Resources, Inc. (EOR) is an early-stage company focused on
developing the St. Johns Helium/CO2 field, and producing oil via enhanced oil
recovery processes using CO2 injection in the United States. The Company owns
and operates the St. Johns Field, the largest undeveloped helium and CO2 field
in North America.
Certain statements contained herein are forward-looking statements,
including statements relating to Enhanced Oil Resources' 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 information because it is possible that expectations,
predictions, forecasts, projections and other forms of forward-looking
information will not be achieved by Enhanced Oil Resources. By its nature,
forward-looking information involves numerous assumptions, inherent risks and
uncertainties. A change in any one of these factors could cause actual events
or results to differ materially from those projected in the forward-looking
information. 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. Forward-looking statements are based on current expectations,
estimates and projections that involve a number of risks and uncertainties
which could cause actual results to differ materially from those anticipated
by Enhanced Oil Resources and described in the forward-looking statements or
information. The forward-looking statements are based on a number of
assumptions which may prove to be incorrect. Readers should be aware that the
list of factors, risks and uncertainties set forth above are not exhaustive.
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
ON BEHALF OF THE BOARD OF DIRECTORS
Barry D Lasker, CEO
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
For further information:
For further information: visit our Website at www.enhancedoilres.com or
please call Don Currie, on 1-888-990-3551.