Listed: TSX Venture Exchange (Symbol: EOR)
HOUSTON, Jan. 24 /CNW/ - Enhanced Oil Resources Inc. (the "Company") is
pleased to provide the following drilling update to shareholders.
Further our last report to shareholders earlier this month the Company
has now signed an agreement with Animas Well Service for an additional 10 well
program at the Company's St Johns Helium and CO2 Field located in Apache
County, Arizona and Catron County, New Mexico. The Animas Rig 504 has rigged
up on the 11-20-31 location and is expected to begin drilling operations by
this weekend. This well has been permitted as a potential horizontal well in
the Granite Wash/fractured basement reservoirs found productive at the 11-6-31
well located approximately 3 miles to the north.
As previously reported the Company has also been drilling the 11-29-31
well to evaluate the potential of the Amos Wash and Granite Wash intervals
found productive elsewhere in the field. The 11-29-31 well has been drilled to
the top of the Granite Wash interval and electric logs over the Amos Wash
interval indicates approximately 145 ft of apparent pay. This apparent pay
count is similar to other wells that have previously tested gas at rates
greater than 2 million cubic feet per day. Casing has now been run to the top
of the Granite Wash interval and the rig has moved off location to drill the
10-2-30 well approximately 3 miles to the south west of the 11-29-31 well. A
smaller air drilling rig is being mobilized to the 11-29-31 location to drill
the remaining Granite Wash and fractured basement reservoirs. These reservoirs
will be drilled with air and will be tested once drilling is completed. The
Amos Wash interval on all wells to be tested during this program will be
re-drilled as a twin to the original deeper well to allow for air drilling and
completions following logging of the section in the earlier deeper well. It is
anticipated that the shallow Amos wash wells will be drilled approximately
50ft from the original well locations.
The Company anticipates that up to 12 pairs of wells will be drilled and
tested over the next 3 months.
The Company also announces the grant of 1,200,000 incentive stock options
entitling the purchase, for a period of five years, of 1,200,000 shares of the
company at a price of $1.05 per share 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: visit our Website at www.enhancedoilres.com, or
Retail Investors please call Don Currie on 1-888-990-3551