Enhanced Oil Resources Inc reports 260% increase in oil and gas revenue for 2008



    HOUSTON, April 9 /CNW/ - Enhanced Oil Resources, Inc. (TSX-V: EOR)
announces its audited financial results for the year ending December 31, 2008.
    Oil and gas revenue in 2008 increased $3.1 million or 260% to $4.3
million as a result of increased production and an increase in the average
price of oil and gas sales compared to 2007. During 2008, the Company acquired
the Crossroads Devonian Unit and post acquisition has increased daily
production from 38 barrels of oil per day (bopd) to a current production rate
of 112 bopd. Gross oil sales increased to 53,700 barrels of oil equivalents
("boe's") or 42,700 net boe's compared to 17,900 net boe's in 2007, an
increase of 140% over net sales in 2007. For 2008 the Company averaged 147
boe's per day while current daily production is averaging approximately 200
boe's per day. The average price received for sales was US$93.24 per boe
compared to US$66.23 per boe received in 2007. Lease operating expenses
related to oil and gas properties increased $1.4 million related to additional
production. Improved operating efficiencies and well cycling at the Chaveroo
oil field have resulted in an overall reduction of operating costs per boe to
$27.11 in the 4th quarter of 2008 as compared to $53.93 in the first three
quarters of the year. Activity to further reduce operating costs is ongoing.
    The Company incurred a net loss and comprehensive loss of $10.1 million
for the year ended December 31, 2008 compared to a net loss of $10.0 million
compared to the same period in 2007. The Company reported loss per share of
$.09 for 2008 compared to $.13 per share reported for 2007 on average
outstanding shares of 107,487,030 shares in 2008 compared to 78,602,164
average outstanding shares reported for 2007. Operating expense and general
and administrative expense increased $1.5 million and $1.9 million,
respectively, in 2008 as a result of increased production and increased
personnel related to the Company's two business segments. Non-cash expense
decreases aggregating of $1.7 million compared to 2007 were principally
comprised of a foreign currency translation gain in 2008 of $1.4 million and a
decrease in stock-based compensation expense of $0.7 million. Depreciation,
depletion and accretion expenses increased $0.9 million in 2008.
    At December 31, 2008, the Company had a working capital of $6.4 million,
principally cash of $5.2 million. Resource property expenditures in the St.
Johns Field were $33.4 million in 2008 compared to $22.2 million in 2007.
Expenditures related to oil and gas properties were $18.3 million in 2008,
including oil field acquisitions of $6.1 million and CO2 pilot project
expenditures of $7.4 million.
    Chief Executive Officer Barry Lasker stated "The results achieved in 2008
were significant in moving us further along toward reaching our objectives for
our two key strategic project areas. These projects are inherently long-term
and management will continue to take a long-term view as it considers, among
other criteria, current and expected economic and operating alternatives. To
that end, we engaged Tristone Capital in February 2009 to assist us in
securing a development partner in the St Johns Field. That project is moving
toward a mid-year conclusion and we are optimistic that it can result in the
commencement of the full-field development of the St Johns Field in the near
term. We remain encouraged by the results to date of our Milnesand pilot CO2
injection project and with continued positive results we anticipate being able
to add significant value to the Company in additional reserves and
production."

    
    The Company reported that among the significant results achieved in 2008
compared to 2007 were the following:

    -   Raised aggregate net proceeds of $91.6 million through equity
        issuances of $32.5 million and $59.1 million, respectively;

    -   Drilled and completed 15 wells and 13 wells, respectively in the
        St Johns Field;

    -   Delivered independent engineering reserve estimates in 2008 of
        recoverable CO(2) and helium of 4.2 Tcf and 18 Bcf respectively;

    -   Increased St Johns' Field acreage in 2008 to 250,714 gross acres and
        initiated the unitization process for Arizona leases;

    -   Increased net crude oil production to 42,700 boe's compared to
        17,900 boe's;

    -   Reactivated 50 oil wells to production

    -   Acquired oil field interests at Crossroads Unit in Lea County, New
        Mexico with estimated contingent resources of approximately
        13 million barrels potentially recoverable through CO(2) injection
        compared to acquisitions in 2007 of an estimated CO(2) recoverable
        contingent resource of approximately 53 million barrels; Crossroads
        Unit represents current proved reserves of 148 thousand Bbls

    -   Acquired a field extension to the Milnesand Unit for US$0.436 million
        in October 2008.

    -   Reported net oil and gas netback of $28.12 per BOE;

    -   Reported a decrease in cash used by operations of 30% to
        $3.474 million;

    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

    THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    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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