HOUSTON, June 15, 2012 /CNW/ - Enhanced Oil Resources Inc. (TSX-V: EOR)
is pleased to provide the following update regarding the Company's
operations for June.
As previously reported, the Company's primary goals for 2012 are to add
production and reserves through infill drilling at the Milnesand oil
field, located in Roosevelt County, New Mexico, to evaluate the
Chaveroo oil field for potential infill drilling and to further advance
our planning and permitting objectives for the approximate 41 mile CO2 pipeline connecting Kinder Morgan's Cortez CO2 pipeline to our Milnesand oil field by September 2015.
Oil production volumes for May averaged 375 bopd, a decrease of 19 bopd
from April. The reduction in production volumes for May is due to the
Crossroads 102 well being shut in for most of the month due to a
down-hole failure. That well has been worked over and is expected to
return to production in the next few days. As previously discussed, the
Company had been waiting for the delivery of fit-for-purpose tools to
attempt additional fishing operations at the Crossroads 303 well for a
parted submersible pump. Fishing operations have commenced, however, as
of this date we have been unsuccessful in retrieving the remainder of
the submersible pump from the well. The Company is continuing to work
on the 303 well and is optimistic that production can be re-established
in due course.
At the Milnesand oil field, we are preparing for the arrival of Key
Energy's drilling rig on the Milnesand #522 wellbore to begin a
1400-foot lateral into an offsetting 20-acre in-fill location. The
arrival of the drilling rig will commence the previously announced 3
well horizontal drilling program, the first horizontal wells ever to be
drilled in the field. We will provide updates as they become available.
At the Crossroads oil field, we have contracted with Dawson Geophysical
to acquire the first ever 3-D seismic survey at that field and expect
to commence that program in the third quarter of 2012, pending final
At the Chaveroo oil field we have received all well log information not
previously owned and we have provided that data to external consultants
to perform a field-wide log normalization project. We believe that
this project is necessary to support the definition of additional oil
reserves over our substantial leasehold position.
We continue the surveying and permitting of the Cortez to Milnesand CO2
pipeline. Survey work will be completed in the third quarter of 2012,
with rights- of- way agreements being completed by the end of the year.
About Enhanced Oil Resources Inc.
Enhanced Oil Resources Inc. is an oil and gas development company, with
a principal goal of increasing crude oil and natural gas production
through enhanced oil recovery ("EOR") and infill drilling projects it
is initiating in the Permian Basin on oil fields acquired by the
Company in 2007 and 2008 for that purpose.
Certain statements contained herein are "forward-looking statements" and
"forward-looking information" under applicable securities laws,
including statements regarding beliefs, plans, expectations or
intentions regarding the future relating to Enhanced Oil Resources
Inc.'s 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 statements
because it is possible that expectations, predictions, forecasts,
projections and other forms of forward-looking information will not be
achieved. Forward-looking statements are based on the opinion and
estimates of management at the date the statements are made, and are
based on a number of assumptions and subject to a variety of risks and
uncertainties and other factors that could cause actual events or
results to differ materially from those projected in the
forward-looking statements. 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. Assumptions upon which such
forward-looking statements are based include that the Company will be
able to carry out its proposed activity for 2012, that there will be
development of our oil reserves, that production increases from our
oilfields will be added, that our infill program will commence as
expected, that additional reserves will be identified in our fields
from our resource studies, that our connecting pipeline activities and
objectives will be achieved as expected or that our Crossroads 3-D
seismic program will commence as expected. 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 POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
SOURCE Enhanced Oil Resources Inc.
For further information:
visit our Website at www.enhancedoilres.com. or please call Don Currie on 1-888-990-3551.