HOUSTON, TX, April 11, 2012 /CNW/ - Enhanced Oil Resources Inc. (TSX-V: EOR) is pleased to provide the following update regarding the Company's operations for April.
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 Chavez County, New Mexico, to evaluate the Chaveroo oil field for potential infill drilling and to further the planning and permitting of a 41 mile CO2 pipeline that is scheduled to connect Kinder Morgan's Cortez CO2 pipeline to our Milnesand and Chaveroo oil fields by September 2015.
Oil production volumes for March averaged 371 bopd, an increase of 6 bopd since February. The Crossroads 105 well continues to produce at 68 bopd since being reactivated in early February. Work continues on the Crossroads 106 well to convert the well to a second water injector. Additional injection capacity is required in order for the Company to add oil production in the field. We have reviewed several options to bring our 303 well back to production, including sidetracking the existing well, milling the obstruction and machining new tools to latch onto the stuck pump and have concluded that the machining of fit-for-purpose tools offers the best option at this stage. The tools will take approximately 4 weeks to make and once completed, the process to remove the obstruction will start.
At the Milnesand field, all wells required to be plugged and abandoned as part of our Agreed Compliance Order with the New Mexico Oil Conservation Division have been completed. Paperwork has been submitted to the relevant authorities and we expect to have all work completed by April 17th, as required. In regards to our upcoming drilling program at Milnesand, we have completed preparation of the drilling locations and well bore integrity evaluations for the initial three lateral infill wells and intend to commence drilling in late June.
At the Crossroads field we have contracted a 3-D seismic crew to acquire the first ever 3-D seismic survey at that field and expect to have that program completed by the end of 2nd quarter, 2012.
In Texas, we have completed workover operations on three wells and production has returned to approximately 30 bopd. Additional wells will be targeted for work-over this month. Results will be evaluated from these properties to determine if further activity is then warranted.
Following the recent sale of the St Johns field we are in the process of updating and amending our website to reflect the new focus for the Company. The revised website is expected to be on line within the next few weeks.
As previously reported, the Company will hold a conference call for shareholders and interested parties in April to outline the business plan for 2012. Once our year end 2011 reserve report and financials are completed and approved by the board we will hold our call. We will provide dial-in details once they are confirmed.
About Enhanced Oil Resources Inc.
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 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 accelerated development of our oil reserves, that production increases from our oilfields will be added, that our infill program will commence as expected and 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
For further information:
For more information visit our Website at www.enhancedoilres.com. or please call Don Currie on 1-888-990-3551.