Enhanced Oil Resources, Inc. Announces Start-Up of CO(2) Injection at Milnesand (San Andres) Unit, Roosevelt County, New Mexico



    HOUSTON, Sept. 2 /CNW/ - Enhanced Oil Resources, Inc. (TSX-V: EOR) today
announced that CO(2) injection at the Company's wholly owned Milnesand (San
Andres) Unit oil field located in Roosevelt County, New Mexico commenced on
August 25, 2008 and over the last 7 days injection has stabilized at a daily
rate of approximately 0.4 million cubic feet per day (mmcfpd).
    As previously announced, the Milnesand (San Andres) Unit covers
5,000 acres in a 5,500 acre mature oilfield that is currently producing
approximately 70 barrels of oil per day and has produced approximately
12 million barrels of oil to date, leading to only 13% recovery of the
original 95 million barrels of oil in place. The Company's independent EOR
consultants, Advanced Resources International (ARI), completed a proprietary
screening study of the field for the Company and in a report dated March 19,
2007 has estimated that the field could recover an additional 18 million
barrels of oil using state-of-the-art CO(2) injection processes. These are
categorized as contingent resources under NI51-101. ARI also estimates that
the field has the potential, once fully flooded, to reach an EOR peak
production rate of over 5,000 barrels of oil per day. Under NI51-101
Contingent Resources are those quantities of oil and gas estimated on a given
date to be potentially recoverable from known accumulations but are currently
not economic.
    Mr. Barry Lasker reports "The start up of CO(2) injection at Milnesand is
a milestone event for the Company. The anticipated positive response from the
pilot project will allow significant value to be added to the Company and will
enable the Company to proceed with full-field CO(2) flood development as soon
as our St Johns pipeline is in operation. As we have previously stated, our
mission is to build a reserve base in New Mexico where significant EOR
potential exists and to leverage our vast CO(2) resource into opportunities
that will add significant value to the Company. We will provide updates over
the coming months as we await a positive flooding response."

    About Enhanced Oil Resources
    ----------------------------
    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.

    Forward-Looking Statement
    -------------------------
    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
policies.

    
    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: visit our Website at www.enhancedoilres.com or
please call Don Currie on 1-888-990-3551

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