HOUSTON, Feb. 3 /CNW/ - Enhanced Oil Resources Inc. (TSX-V: EOR) today provides the following update on corporate and operational activity.
As previously reported the Company has been actively pursuing a reactivation program at the Company's 98.5% owned Crossroads Siluro-Devonian Unit in Lea County, New Mexico. As last reported the Company had increased total Company owned production from an average of 186 barrels oil per day (BOPD) in July 2009 to 455 BOPD in December 2009. Average production for the month of January was 510 BOPD, an increase of 12% over December rates. Since our last update we completed the reactivation of the Crossroads No.105 well and currently are awaiting electrical hook up to bring that well back online. This will bring our active producing oil wells at Crossroads to a total of 7 wells compared to the single producer when we originally acquired the field in July 2008.
At the Company's wholly owned Milnesand San Andres Unit the Company has now begun a 10 to 20 well workover program designed to increase production and prepare for an increase in water injection within the core Phase 1 CO(2) expansion area. Following the completion of the Milnesand workovers, the workover rig will be moved back to Crossroads to increase water handling capacity by converting one of the remaining non-producing wells into a second water injection well. The Company continues to review additional workover and recompletion opportunities within the Crossroads Unit and anticipates acting on those opportunities once an increase in water handling is achieved.
Mr. Barry Lasker reports "We continue to have positive results at our Crossroads field with current production increasing by approximately 55 BOPD over the average for the prior month. We also expect to be able to add production from the No.105 well once power has been restored to that location, however we have also reached the current limit at our water handling facility. We are currently reviewing ways to increase the water handling at Crossroads and for this reason we have moved the workover rig to our wholly owned Milnesand field to initiate a reactivation program in and around our CO(2) pilot area."
"We have previously reported that the Company is generating positive cash from operations as a result of increasing oil production, improved oil pricing and reductions in lease operating expenses (per unit of production) and in general and administrative costs. The 510 BOPD average daily rate for the month of January was an historical high for the Company and we will continue to press forward with our reactivation program at Crossroads, Milnesand and Chaveroo fields to further add to this number."
About Enhanced Oil Resources Inc.
Enhanced Oil Resources Inc. is an early-stage company, with two principal
business segments of
(i) Crude oil and natural gas production through secondary and
oil recovery ("EOR") projects it is initiating in the Permian
Basin on oil fields acquired by the Company in 2007 and 2008 for
(ii) Helium and CO(2) resource exploration and production through
property interests it controls in approximately 251,000 gross
acres of land within the St Johns Helium/CO(2) field in Arizona
and New Mexico, and where the Company is developing what is
thought to be the largest undeveloped helium and carbon dioxide
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 policies.
ON BEHALF OF THE BOARD OF DIRECTORS
Barry D Lasker, CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Enhanced Oil Resources Inc.
For further information: For further information: visit our Website at www.enhancedoilres.com or please call Don Currie on 1-888-990-3551