HOUSTON, Sept. 9 /CNW/ - Enhanced Oil Resources, Inc. (TSX-V: EOR) today
announced the results of the 2008 Cawley, Gillespie & Associates Inc. Reserve
Report, a reserve evaluation report of the Company owned, Helium (He) and
Carbon Dioxide (CO(2)), reserves within the St. Johns He/CO(2) field located
in Apache County, Arizona and Catron County, New Mexico.
The Company commissioned Cawley, Gillespie & Associates Inc. to provide a
Helium and CO(2) reserve report based on standard SPE-PRMS petroleum reserve
reporting guidelines incorporating all geological, reservoir and drilling data
collected within the field as of July 1st, 2008. Standard reserve categories
of Proved, Probable, Possible and Exploratory were utilized and assigned to
each drilling location based on the offset location approach. Field spacing
rules dictated that step-out drilling locations be considered on 640-acre
spacing. Due to the high probability of future down-spacing, 320-acre drills
inside proven 640-acre sections were included in the report as probable
reserves. Phase I development of the St. Johns Dome includes 15 years of
Helium-rich CO(2) production of 350 million cubic feet per day (MMCFPD) then
natural decline thereafter. Additionally, Helium-rich areas of the field were
targeted maximizing the value of the project. Based on these criteria, Cawley,
Gillespie & Associates Inc. estimated that 4.2 trillion cubic feet (TCF) of
Helium-rich CO(2) reserves exist in Phase I development with 2.3 TCF falling
in the "proved + probable" classification of which 1.8 TCF is located in
proven 640-acre sections of the field. Being CO(2) and Helium, National
Instrument 51-101 of the Canadian Securities Administrators does not apply to
these reserve calculations and, accordingly, these reserves are not required
to be categorized under NI51-101 Canadian securities regulations.
Barry Lasker, President and Chief Executive Officer of Enhanced Oil
Resources said: "The results from the Cawley, Gillespie & Associates Inc.
reserves report has confirmed that the St. Johns Dome is capable of producing
an initial targeted rate of 350 MMCFPD of Helium-rich CO(2) and that
considerable upside remains in the field for future expansions. The Company is
currently in discussions with potential end users for the delivery of CO(2)
into the Permian Basin. In this age of high oil prices there is considerable
interest in CO(2) flooding in mature, depleted oil fields. The Company stands
ready to develop the St. Johns field in order to capture value associated with
CO(2) flooding its own oil fields and to supply additional CO(2) to other
producers in the area."
About Enhanced Oil Resources Inc.
Enhanced Oil Resources Inc. (EOR) is an early-stage company focused on
developing the St. Johns Helium/CO(2) field, and producing oil via enhanced
oil recovery processes using CO(2) injection in the United States. The Company
owns and operates the St. Johns Field, the largest undeveloped helium and
CO(2) field in North America.
About Cawley, Gillespie & Associates Inc.
Based in Texas, USA, Cawley, Gillespie & Associates Inc. is a leading
petroleum engineering firm that has provided formal reserve reports for
clients since 1961 for properties around the globe.
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;
Retail investors please call Don Currie on 1-888-990-3551