Listed: TSX Venture Exchange (Symbol: EOR)
HOUSTON, Sept. 19 /CNW/ - The Board of Directors of Enhanced Oil
Resources Inc. (the "Company") is pleased to announce that the Company has
exercised its option to acquire an additional +/- 3,100 acres of leases within
the Chaveroo oil field located in Roosevelt County, New Mexico. The
acquisition of these leases increases the Company's ownership of the Chaveroo
field to approximately 18,000 acres within the +/- 19,000 acre field. The
acquisition is expected to add approximately 18 barrels of oil per day (bopd)
to the current daily production at Chaveroo of approximately 42 bopd. An
ongoing workover program will be expanded in the short term to include wells
purchased in this transaction. Total compensation paid was US$650,000.
The Chaveroo oil field produces from the San Andres formation at a depth
of approximately 3,500 ft and has produced approximately 24 million barrels of
oil to date, leading to only 14% recovery of the original 180 million barrels
of oil in place. The Company's independent EOR consultants, Advanced Resources
International (ARI), completed a proprietary review of the field for EOR Inc.
and in a report dated January 3, 2007 has estimated that the field could
recover an additional 34 million barrels of oil using state of the art CO2
injection processes. These are categorized as contingent resources under
NI51-101. ARI also estimates that the field has the potential, once fully
flooded, to reach an EOR peak production rate of over 10,000 barrels of oil
per day. The Company intends to initiate a pilot CO2 flood of the property
within the next few months. Under NI51-101 Contingent Resources are those
quantities of oil and gas estimated on a given date to be potentially
recoverable from known accumulations but are currently not economic.
EOR Inc.'s President and CEO Mr Barry Lasker reports "The acquisition of
this portion of the field prior to initiating a pilot CO2 flood will allow the
Company to add contingent resources at a very reasonable price, a price that
would be considerably higher should a positive CO2 pilot flood response be
achieved. The consolidation of ownership within the field will significantly
simplify future development activity and potentially allow for an expansion of
the proposed CO2 pilot flood."
The Company also announces the grant of 850,000 incentive stock options
entitling the purchase, for a period of five years, of 850,000 shares pursuant
to the terms of the Company's Stock Option Plan approved by shareholders on
September 13, 2007.
Enhanced Oil Resources Inc. is a development stage, enhanced oil recovery
(EOR), company that controls approximately 235,000 acres of land within the St
Johns Helium/CO2 field in Arizona and New Mexico where the Company is
developing what is thought to be the largest undeveloped resource of helium
and carbon dioxide gases in North America. Independent engineering firms have
estimated that the St Johns field contains approximately 15 trillion cubic
feet of in place resources, with a potential recoverable resource of 5
trillion cubic feet. Development of the project could result in the Company
becoming one of North America's largest CO2 suppliers and EOR producers. The
Company's strategic focus for CO2 delivery and EOR production is the Permian
Basin where significant potential exists for enhanced oil recovery from
mature, depleted oil fields.
ON BEHALF OF THE BOARD OF DIRECTORS
Barry D Lasker, CEO
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
For further information:
For further information: Don Currie, 1-888-990-3551