HOUSTON, July 13 /CNW/ - Enhanced Oil Resources Inc. (TSX-V: EOR) today provides the following update on operational activity.
As previously reported, the Company had been working to upgrade the water handling capacity at the Crossroads Siluro-Devonian Unit in Lea County, New Mexico and that water injection recommenced at Crossroads in early June. Over the last month, production wells have been brought back on production, with production rates stabilizing over the last 2 weeks at Crossroads at a daily rate of 450 bopd. Total Company production for the same period has averaged 530 bopd. The No. 304 water injection well is performing as expected and has averaged an injection rate of approximately 6,800 barrels of produced water a day. All but one production well (No. 106) has now been turned into the tanks and it is expected that that well will also be brought on within the next few weeks.
The Company is also pleased to report that the Crossroads No. 101 Morrow discovery well has received approvals for production from the New Mexico OCD and that a gas purchase agreement with a subsidiary of Targa Resources, Inc. has been signed. Surface equipment is now being installed and the production of natural gas and liquids is expected to commence once the new facilities are completed within the next 3 weeks.
Mr. Barry Lasker reports "We are pleased to report that the Crossroads production has returned to pre workover levels and that our water injection facility is performing as expected. The Company will continue to revisit several wells at Crossroads with the view to maximizing production from existing zones and by opening up new behind pipe zones. Once the new production commences from the No. 101 well, we expect that Company wide production should increase to over 600 Boepd, a new high for the Company. EOR continues to focus on the goal of ending 2010 with a production rate of 1,000 barrels of oil equivalent per day. We will provide additional information on the workover program as it comes to hand."
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 primary, 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 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.
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