HOUSTON, June 19 /CNW/ - June 19, 2008 - Enhanced Oil Resources, Inc.
(TSX-V: EOR) today announces that further to a press release dated May 28,
2008 the Company has completed the acquisition of an additional New Mexico
oilfield that the Company's independent consultants has identified as having
considerable enhanced oil recovery (EOR) potential. The acquisition is the
third of several oilfields the Company is targeting as part of its strategy to
build a substantial EOR reserve base in the Permian Basin for CO2 flooding.
Total purchase price at closing was US$ 4,596,517 and the effective date for
the purchase is May 1, 2008. The acquisition will be immediately accretive to
cash flow and increases the Company's daily production to approximately
170 barrels of oil.
As previously announced the acquisition covers an 800 acre Unit in a
2,400 acre mature oilfield. The Unit is currently producing approximately
38 barrels of oil per day (bopd) and, to date, has produced approximately
22 million barrels of oil (MMBbl) out of the Field's previously recovered
total of 44 MMBbl, a 35% recovery of the estimated 125 million barrels of
original oil in place.
The Company's independent enhanced oil recovery consultants, Advanced
Resources International (ARI), completed a proprietary screening study of the
field for the Company and in a report dated April 7, 2008 estimated that the
field could recover an additional 31 MMBbl (18 MMBbl net to the Unit) using
state of the art CO2 injection processes. These resources are categorized
under Canadian securities regulation as contingent resources under NI51-101.
ARI estimates that the field has the potential, once fully flooded, to reach
an EOR peak production rate of more than 8,000 bopd. Under NI51-101 rules,
contingent resources are those quantities of oil and gas estimated on a given
date to be potentially recoverable from known accumulations but is currently
Mr. Barry Lasker reports "We are very pleased to have completed this
acquisition, and together with our initial acquisitions announced last year,
the Company will have acquired in excess of 70 million barrels of contingent
resources that could become proven reserves if a positive CO2 flood response
is achieved. 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 CO2 resource into opportunities that will add significant value to the
Company. Furthermore, the field is located within 8 miles of our initial
acquisitions and together these fields could form the centre of a strategic
focal area for the Company. The acquisition of this third field reinforces our
ability to acquire additional EOR resources in the future. We are actively
pursuing additional resource opportunities within this area, and in other
areas and to keep our competitive advantage we have elected not to disclose
the details of the location of the transaction at this time."
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.
Retail investors please call Don Currie on 1-888-990-3551.