HOUSTON, June 30 /CNW/ - Enhanced Oil Resources, Inc. (TSX-V: EOR ) (the
"Company") today announces that it has closed, subject to final Exchange
approvals, the non brokered private placement announced on June 23rd, 2008.
The non brokered placement closed containing 22,926,416 Units for total
proceeds of $28,428,756 (CDN). The placement was comprised of Units priced at
$1.24 per Unit. Each Unit consists of one share of the Company and one-half of
one non-transferable share purchase warrant, each whole warrant entitling the
holder to purchase one additional share of the Company at a price of $1.80
until June 27th, 2010. Finder's fees totaling $2,055,024 (CDN) and 1,261,226
warrants were paid. All securities in this private placement are subject to
hold periods expiring October 28th, 2008.
In other related news the Company also reports that it has closed,
subject to final Exchange approvals, the first tranche of the financing
related to the brokered private placement announced on June 23rd, 2008. The
first tranche contained 2,438,500 Units for total proceeds of $3,023,740 (CDN)
and these proceeds net of costs have been delivered to the Company. The second
and final tranche is expected to close on or before July 15th, 2008.
Previously the Company had announced it engaged Union Securities Ltd.
(the "Agent") as agent in connection with a private placement of up to
$7,500,000 (CDN) comprised of Units (6,048,387 Units) at $1.24. Each Unit is
comprised of 1 common share and one half of one non-transferable common share
purchase warrant, each whole warrant entitling the holder to purchase an
additional common share at $1.80 per share for a period of 24 months from
closing. The Company proposed to grant the Agent the Over-Allotment Option to
sell up to $2,500,000 (CDN) in additional units.
The Agent with regard to its services is entitled to receive a cash
commission equal to 7% of the aggregate gross proceeds of the Units sold
pursuant to the Offering and the Over-Allotment Option including in respect of
any Units purchased by the Agent as principal and Agent Compensation Options
equal to 7% of the aggregate number of Units sold pursuant to the Offering and
the Over-Allotment Option where each Agent's Compensation Option entitles the
Agent to purchase one Unit of the Company at $1.24 per Unit for a period of 24
months from the Applicable Closing Date.
The first tranche (2,438,500 Units) of the Offering closed in Toronto on
June 27, 2008. All securities issued in connection with the first tranche
closing are subject to a hold period expiring October 28th, 2008.
Proceeds from these placements, which are subject to regulatory approval,
are intended to be used for the CO2 pilot flood and work over program for the
Company's recently purchased oilfield (News Release dated June 19, 2008), for
continued development drilling at the St Johns Helium/CO2 field, for
additional oilfield acquisitions in targeted areas of the Permian Basin and
for general working capital.
About Enhanced Oil Resources
Enhanced Oil Resources, Inc. (EOR) is an early-stage company focused on
developing the St. Johns Helium/CO2 field, and producing oil via enhanced oil
recovery processes using CO2 injection in the United States. The Company owns
and operates the St. Johns Field, the largest undeveloped helium and CO2 field
in North America.
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
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: visit our Website at www.enhancedoilres.com.
Retail investors please call Don Currie on 1-888-990-3551