Enhanced Oil Resources provides corporate update



    HOUSTON, June 24 /CNW/ - Enhanced Oil Resources, Inc. (TSX-V: EOR) (the
"Company") today provides the following corporate and operational update.
    The Company has been working on a number of initiatives in recent months,
including development drilling and testing at the St. Johns CO(2) field,
implementing a CO(2) pilot project at the Milnesand oil field, extending the
work-over programs at Milnesand and Chaveroo, acquiring additional oilfields
within the Permian Basin, finalizing our TSX listing application, making key
corporate hires and securing additional financing to ensure we can reach our
goals for 2008.
    We have completed the drilling and testing of 15 wells at the St. Johns
field as part of our 2008 program. Data from these wells were provided to
W. M. Cobb and Associates ("Cobb") in order to update a resource study
completed in 1999 and revised in 2005. The recent testing of both the Granite
Wash and the Amos Wash intervals at rates of up to 6.5 million cubic feet per
day (mmcfpd) and 5.4 mmcfpd respectively have dramatically improved the
deliverability potential of the field and will potentially reduce the overall
capital requirements for the field's development. More importantly, this
year's improved test results have accelerated the overall production
capabilities of the field, with approximately 75% of the production now
possible over a 20 year period rather than the previously anticipated 40 year
period. All drilling data, as well as the 2008 Cobb report have now been
provided to the independent engineering firm of Cawley, Gillespie and
Associates who are in the process of completing a reserve report that will
quantify the Proven, Probable and Possible reserves at St. Johns. We expect to
receive the final reserve report within 30 to 45 days.
    All surface facilities are now in place on the Milnesand CO(2) pilot
flood. We are currently completing a down-hole work over of the CO(2)
injection well and we hope to have CO(2) injection commencing within the next
two weeks. The water injector wells on the outside of the pilot area are all
injecting and the pilot area is pressuring up as expected. Total daily
injection is averaging approximately 1,000 barrels of water per day.
    The Company has been continuing a work-over program at the Milnesand and
Chaveroo fields causing current production to increase to approximately 140
barrels oil per day (bopd). With the acquisition announced earlier this month,
our daily production has increased to approximately 180 bopd. We are currently
reviewing additional work-over potential at our oilfields and expect to start
a 40-well work-over program later this summer. As a result of our activity, we
hope to have total production of 220 to 250 bopd by the end of the year.
    On the pipeline front, SunCoast Energy has recently executed a
partnership agreement with Estrella Energy, LP ("Estrella") to jointly develop
the Permian CO(2) pipeline project. As previously announced, the proposed
pipeline will run approximately 350 miles from the Company's St. Johns
Helium/CO(2) field located on the border of Arizona and New Mexico, to the
Permian Basin of New Mexico and West Texas. The founders of Estrella, David
Biegler and Mike Hunter, have a strong track record in the pipeline,
processing and midstream business segments. They were part of the management
team responsible for creating Regency Gas Services through the acquisition and
development of various gathering, processing and pipeline businesses, that was
sold to Hicks, Muse (a private equity fund). Estrella brings extensive
management talent, knowledge and experience in the pipeline business to
complement the existing management team at SunCoast. The combined partnership
team will create a new special purpose entity that will build, own and operate
the new pipeline project. The SunCoast-Estrella partnership creates a world
class team of executives that will develop the pipeline project that will
enable the Company to achieve our business plan objectives.

    We are currently reviewing the final application documents for our
Toronto Stock Exchange (TSX) listing. As part of the listing process we are
awaiting an update from Sproule and Associates on the Milnesand reserve
report. Our initial report received earlier this year did not meet the minimum
reserves value of $3mm CDN (PV20%) required under the TSX rules. The
aforementioned work-over activity completed during the first quarter of 2008
that increased daily production from approximately 60 bopd to 75 bopd was
subsequently added to the reserve report. We expect the new report to meet the
minimum reserve requirements and be available within the next two weeks. We
hope to have the completed application into the Exchange shortly thereafter.
    We have recently hired several new oil and gas professionals. On
July 1, a new Chief Accounting Officer joins the Company and will be
responsible for the completion and timely filing of our quarterly and annual
financials. In addition, we have hired a senior landman to assist in the land
management of our assets in New Mexico and Arizona. We continue to search for
a Chief Operations Officer to manage the day-to-day operations of the Company,
allowing other senior management to allocate more time to overall business
strategy and meeting the needs of the Company's shareholders and other
stakeholders.
    The Company recently announced a financing of up to $35 million in both a
brokered and non-brokered structure targeting the institutional investor in
North America and Europe. Financing is required to ensure that the Company is
positioned to take advantage of available oilfield acquisitions. While there
is no guarantee that a large acquisition can be made, access to additional
capital make such an opportunity more likely. This financing provides the
Company with the ability to move diligently should an appropriate opportunity
arise.
    Finally, we have been busy with our marketing efforts by presenting at
the IPAA conference in New York, the Finance and Energy conference in Geneva
and Zurich and completing road shows in Europe and much of the US. We intend
to present at several conferences in the coming months as we continue to
introduce new investors to the EOR story.

    About Enhanced Oil Resources
    ----------------------------

    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 CO2
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;
Retail investors please call Don Currie on 1-888-990-3551

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Enhanced Oil Resources Inc.

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