HOUSTON, Sept. 6, 2012 /CNW/ - September 6, 2012 - Enhanced Oil
Resources Inc. (TSX.V: EOR) (OTCQX: EORIF) (the "Company") is pleased
to provide the following update regarding the Company's operations for
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 the
planning and permitting of a 40 mile CO2 pipeline to connect Kinder Morgan's Cortez CO2 pipeline to our Milnesand and Chaveroo oil fields by September 2015.
At the Company's wholly owned Milnesand oil field, the previously
announced three well infill lateral program has been completed and the
rig has been released. The MSU #123 well, the third and final well in
this program was drilled and cased as a 1,400 foot lateral and is
expected to be acidized and stimulated within the next two weeks.
The MSU #522 well, the first well in the program, is currently producing
at a stabilised daily rate of 40 barrels of oil per day (bopd). This
rate is the highest production rate achieved by a single well in the
field over the last 20 years and was achieved over a lateral length of
approximately 2,500 feet. The Company anticipates that higher rates can
be achieved on the #522 well as it currently is carrying a higher than
expected fluid level. A larger pump or other lift mechanics may be
required as the Company further evaluates production rates. The Company
also anticipates higher rates can be achieved in future wells by
extending the lateral distance to approximately 5,000 feet. The MSU
#141 well, the second well drilled in the program was acidized and
stimulated on the 28th of August and is currently flowing back drilling fluid and spent acid.
Oil production volumes for August averaged 408 barrels of oil per day
(bopd), an increase of 16 bopd from July levels. Production volumes for
the last ten days of August averaged approximately 432 bopd, largely
due to the production gained from the MSU #522 well.
Progress is continuing on the Cortez to Milnesand CO2 pipeline project. Civil survey and archeology crews continue their work
in the field. To date, surveying work and plats are complete for 75%
of the proposed 40 mile pipeline route. We anticipate the survey crews
will complete their work over the next two weeks and have finalized
work products to the Company in early October. Once their work is
complete, the acquisition of right-of-ways can be finalized and
detailed design engineering and costs can be calculated. Our goal is
to have cost information completed in the fourth quarter of 2012 with
execution of right-of-ways to follow after the Company has had an
opportunity to review updated cost information.
Barry Lasker, CEO and President of Enhanced Oil Resources states, "The
Company is pleased to report that the three well drilling program at
Milnesand has been successfully completed on time and on budget. The
results, to date, confirm our technical review that more oil can be
recovered at Milnesand, and potentially at Chaveroo, by infill drilling
as a precursor to our CO2 developments. We are in the process of bringing all three new wells on
line within the next few weeks and we will provide further updates in
due course. The Cortez to Milnesand CO2 pipeline project is continuing on schedule and we look forward to
completing this part of the process within two weeks. The Company has a
strong financial position, with cash in the bank, increasing production
and a potential multi-year drilling program ahead of us. "
About Enhanced Oil Resources Inc.
Enhanced Oil Resources Inc. (TSX.V: EOR; OTCQX: EORIF) trades in Canada
on the TSX Venture Exchange under the symbol "EOR" and in the United
States on OTCQX under the symbol "EORIF". Enhanced Oil Resources Inc.
is an early-stage 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.
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, that the lateral wells will be
drilled as expected, that the lateral wells will result in commercial
production as anticipated, that the Cortez to Milnesand pipeline will
be constructed and that oil production will continue as reported.
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:
For more information about Enhanced Oil Resources Inc. please visit our Website at www.enhancedoilres.com. or please call Don Currie at 1-888-990-3551.