HOUSTON, Jan. 20, 2015 /CNW/ - Enhanced Oil Resources Inc. (TSX-V: EOR; OTCQX: EORIF) (the "Company") announces that it is implementing a consolidation of its common shares on the basis of one post-consolidated share for every ten pre-consolidated shares.
The Company believes that reducing the number of issued and outstanding common shares will result in greater investor interest by allowing institutional investors that would, under their investing guidelines, otherwise be precluded from investing at the previous pre-consolidation common share price to invest in the Company, and reduce the volatility in the common share price on a percentage basis. The Company also believes that trading costs on a fixed-dollar amount at a higher price per common share may be lowered for investors relative to the lower price pre-consolidation. The Company expects that the greater interest and reduced transaction costs should ultimately increase and improve the liquidity of the Company's common shares.
Effective at the opening of the market on Wednesday, January 21, 2015 the common shares of the Company will commence trading on the TSX Venture Exchange on a consolidated basis.
The new CUSIP number will be 29333E205 and the new ISIN will be CA29333E2050. The Company's name and stock symbol will remain unchanged following the consolidation.
The Company currently has 160,186,319 issued and outstanding common shares and is anticipated to have 16,018,631 common shares outstanding following the consolidation. The Company's outstanding stock options will also be adjusted on the same basis (one for ten) as the common shares, with proportionate adjustments being made to exercise prices.
Letters of transmittal with respect to the consolidation will be mailed to all registered shareholders of the Company as at January 20, 2015. All registered shareholders who submit a duly completed letter of transmittal, along with their respective share certificates representing the pre-consolidated shares, to the Company's transfer agent, Computershare Investor Services Inc., will receive a share certificate representing the post-consolidated shares. Additional copies of the letter of transmittal can be obtained through Computershare. No action is required by non-registered shareholders who hold securities of the Company through an intermediary to effect consolidation of their shares.
No fractional shares will be issued. Where the exchange results in a fractional share, the number of post-consolidation common shares will be rounded down to the nearest whole common share.
About Enhanced Oil Resources Inc.
Enhanced Oil Resources Inc. owns and operates two large historic oil fields in New Mexico, the Milnesand & Chavaroo oil fields. Recorded Production of these two fields is in excess of 37 million barrels, representing approximately 10% of the oil in place. The Company plans to unlock the value in these resource-rich fields by increasing the efficiency of its operations, and by applying new and proven unconventional production technologies.
ON BEHALF OF THE BOARD OF DIRECTORS
President and 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
Cautionary Statement Regarding Forward Looking Information
Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "will", "could" and other similar words, or statements that certain events or conditions "may" or "could" occur. Such forward-looking information is based on a number of assumptions and subject to a variety of risks and uncertainties, including but not limited to those discussed in the sections entitled "Forward-Looking Statements" in the interim and annual Management's Discussion and Analysis which are available at www.sedar.com. While our management believes that the assumptions made are reasonable, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking information. Forward-looking information herein,and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this cautionary statement. Except as required by law, the Company assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.
SOURCE Enhanced Oil Resources Inc.
For further information: visit our Website at www.enhancedoilres.com.