HOUSTON, Sept. 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 production enhancement program at its oilfields in New Mexico with the purpose of increasing near term oil production in a cost effective manner at a time when costs for goods and services have been reduced. At the Company's 98.5% owned Crossroads Siluro-Devonian Unit in Lea County, New Mexico production has averaged 221 barrels oil per day (BOPD) during September (226 BOPD in August) while Company wide production has averaged approximately 310 BOPD for the same period (317 BOPD in August). The Company is in the process of reviewing additional work over and recompletion opportunities within the Crossroads unit and anticipates acting on those high ranked opportunities within the next 3 months.
At the Company's wholly owned Milnesand San Andres Field the CO2 pilot flood area has now been converted to water injection as part of the initial WAG (water after gas) component of the CO2 flood. Water injection has now reached over 2,000 barrels per day and we are currently injecting over 600 barrels of make up water. A resource study on the waterflood potential at Milnesand has been commissioned with results expected within the next few weeks. Pending results of the water flood report the Company anticipates expanding the water flood project to include the majority of the field and expects to continue this expansion as a precursor to a potential field wide CO2 flood in the future. In addition, all CO2 pilot data has now been provided to our independent reserves engineers and we expect to see the results of the Milnesand CO2-EOR mid year reserves study also within the next few weeks.
At the Company's 2009 Annual General Meeting of shareholders held on September 10, 2009 in Vancouver, British Columbia the shareholders re-elected the current Board of Directors comprised of Barry D. Lasker, Rodney L. Eson, Thomas Milne, L. Edward Parker and John P. Dorrier. The shareholders also re-appointed PricewaterhouseCoopers LLP, Chartered Accountants, as the auditors of the Company, approved the implementation by the Company's Board of Directors of a potential consolidation of the issued common shares and approved the Company's 2009 Stock Option Plan.
Mr. Barry Lasker reports "Our oil field production appears to have stabilized at above 300 BOPD and we expect that with further workovers and a waterflood response at Milnesand we will be able to add to that number. At the Company's annual meeting last week the shareholders overwhelmingly approved all of the proposals including the authorization of the board for a potential rollback of the issued common stock. In response to many shareholder questions the Company has no plans at this stage to implement such a roll back and will only do so in the future should a compelling corporate reason occur to do so."
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 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 purpose.
(ii) Helium and CO2 resource exploration and production through
property interests it controls in approximately 251,000 gross acres
of land within the St Johns Helium/CO2 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