HOUSTON, April 16 /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 Crossroads, Milnesand and Chaveroo oilfields in New Mexico. In July 2009, production enhancement programs were commenced for the workover and reactivation of existing non-producing wells, with initial focus on the Crossroads Devonian Unit. As last reported, the Company had increased gross production from an average of 186 barrels oil per day (BOPD) in July 2009 to 585 BOPD averaged in February, 2010. Average production for the month of March was 500 BOPD.
At the Company's 98.5% owned Crossroads Devonian Unit, the Company has recompleted 6 additional wells since its purchase in July 2008. At the time of purchase, this field was producing an average of 36 BOPD from 1 well. Current production is averaging 405 BOPD for the month of March, a decrease of 85 BOPD from February. In March and in April, we have temporarily shut in up to 3 productive wells due to increased produced water and maintenance to our water injection facility required to handle the high produced water rates associated with the fields production.
Mr. Barry Lasker reports "We have seen considerable production increases over the last six months as we have reactivated several wells at Crossroads. Due to these successes we have now exceeded the current limits of our water injection capabilities and we are now focusing our available resources to increase storage and water injection volumes. We also expect to be able to add production from the Crossroads field once we complete additions to increase our water disposal capacity."
"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 520 BOPD average daily rate for the 1st quarter of 2010 was an historical high for the Company and is ahead of budgeted expectations of 435 BOPD and compares to a production rate of 194 BOPD averaged for the 1st quarter of 2009. We are actively working to increase water handling and surface facilities at Crossroads and while production is down from last month we anticipate that production can be increased once again as our water handling is increased. Once this work is completed we will continue 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 enhanced
oil recovery ("EOR") projects it is initiating in the Permian Basin
on oil fields acquired by the Company in 2007 and 2008 for that
(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
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