HOUSTON, Sept. 17 /CNW/ - Enhanced Oil Resources, Inc. (TSX-V: EOR) today
reports that following the affects of Hurricane Ike the Company's Houston
office building will be closed until Friday, September 19th. Current
operations will continue from remote locations throughout the City. Our
Operations offices located in Midland, Texas and St. Johns, Arizona are
continuing as normal.
The Company is continuing development of the St Johns Helium and CO(2)
field and continues to produce approximately 180 barrels of oil per day (bopd)
from its Oilfields in New Mexico. The Milnesand CO(2) pilot project continues
with CO(2) injection and is performing as expected.
The Company continues to discuss opportunities with parties interested in
CO(2) supply from our St. Johns project and expects to move forward with the
CO(2) contracting process over the course of the next several weeks. While the
Company cannot guarantee a formal agreement of any type, we are encouraged by
the progress to date.
The Company has approximately $18 million of cash on hand which is
sufficient to complete the currently planned development program at St Johns,
to continue with the oilfield workover programs and pilot CO(2) flood and to
continue to fund the ongoing capital expenditures over the next 12 months. The
Company will continue to review acquisition opportunities within its core area
of the Permian Basin and is ready to proceed quickly should they occur.
Barry Lasker, President and Chief Executive Officer of Enhanced Oil
Resources said: "We are pleased with our progress as we execute our business
plan. We are moving forward to secure long term CO(2) gas contracts for
delivery into the Permian Basin for enhanced oil recovery projects. Our
current production covers approximately 2/3rds of our corporate overhead and
our cash on hand is more than enough to cover our firm expenditure commitments
for the next 12 months."
"As we recently reported, the Cawley, Gillespie & Associates Inc. reserve
report independently confirmed that the St. Johns Dome is capable of producing
an initial targeted rate of 350 MMCFPD of Helium-rich CO(2) and considerable
upside remains in the field for future expansions. The Company is currently in
discussions with potential end users for the delivery of CO(2) into the
Permian Basin and we look forward to continued progress in the coming weeks."
About Enhanced Oil Resources Inc.
Enhanced Oil Resources Inc. (EOR) is an early-stage company focused on
developing the St. Johns Helium/CO(2) field, and producing oil via enhanced
oil recovery processes using CO(2) injection in the United States. The Company
owns and operates the St. Johns Field, the largest undeveloped helium and
CO(2) 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