Enhanced Oil Resources Inc. Provides Corporate Update



    HOUSTON, June 26 /CNW/ - Enhanced Oil Resources, Inc. (TSX-V: EOR) today
provides the following update on corporate and operational activity.
    At the St. Johns Helium and CO2 field the Company has received
notification from the federal government that the Bureau of Land Management
(BLM) has no objections to the formation of the St. Johns Gas Unit and has
sent a letter to the State of Arizona supporting such Unit. The State of
Arizona approved the Unit agreement on April 8th 2009; however the approval of
the Unit Agreement was subject to the final sanction by the federal government
and review and approval by the State Land Commissioner of any substantive
changes recommended by the federal government.
    The Company continues to produce approximately 210 barrels of oil per day
(bopd) from its oilfields in New Mexico and the Milnesand pilot project
continues with CO2 injection and is performing as expected. Based on current
oil prices the net revenue from our oil production currently covers
approximately 65% of our monthly overhead.
    At Milnesand, the CO2 pilot flood area has been under continuous CO2
injection for ten months and, to date, has injected in excess of 124 million
cubic feet of CO2. The injection of CO2 has resulted in an estimated 2,450
barrels of incremental oil production and continues to show promise. A
decision has now been made to cease injecting CO2 on, or around, July 31st and
switch over to water injection to maintain the flood conformance. We are
beginning to collect all necessary data to initiate a mid year reserve report
that may result in converting resource barrels at Milnesand into proved and
probable reserves.
    The Company also amends the press release dated June 16th, 2009 that it
has, subject to regulatory approval, extended:
    from June 28th; July 9th; July 23rd and July 27th, 2009 to June 30th,
2010 the expiry date of 10,080,600 share purchase warrants entitling the
purchase of up to an aggregate 10,080,600 shares of the Company at a price of
$1.80 per share. These warrants were issued pursuant to a private placement of
20,161,200 units, each unit comprised of 1 common share and 1/2 share purchase
warrant, the last tranche of which closed on July 27th, 2007; and
    from July 4th, 2009 to June 30th, 2010 the expiry date of 3,625,000 share
purchase warrants entitling the purchase of up to an aggregate 3,625,000
shares of the Company at a price of $1.80 per share. These warrants were
issued pursuant to a private placement of 7,250,000 units, each unit comprised
of 1 common share and 1/2 share purchase warrant, which closed on July 4th,
2007

    
    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 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.

    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

    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.
    

    %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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Enhanced Oil Resources Inc.

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