Enhanced Oil Resources Inc. provides financing update

    Listed: TSX Venture Exchange (Symbol: EOR)

    HOUSTON, Jan. 30 /CNW/ - Enhanced Oil Resources Inc. (the "Company") is
pleased to provide the following financing update to shareholders.
    On January 19, 2008 existing shareholders who purchased approximately
17 million Units in a private placement that closed January 19, 2007 have
exercised their right to purchase approximately 9,980,000 additional shares in
the Company at a cost of Cdn$9,980,000. Following the closing of this
financing the Company now has available cash, notes receivable and restricted
cash of approximately US$ 32,000,000.
    As part of this financing certain Management and Insiders ("Related
Parties") of the Company that took part in this earlier placement have elected
to exercise purchase warrants totaling $2,150,000 and the Company has agreed
to loan the individuals funds required to purchase the warrants for a period
of 18 months. The promissory notes will bear interest at a rate of 8% per
annum. The shares purchased in these transactions will be held in escrow and
will be overseen by an independent escrow committee. The escrow committee will
have the right to sell the shares at any time following 12 months to pay off
the loan, to the extent the notes have not been paid off earlier. The advances
made pursuant to promissory notes to the Related Parties are exempt from
Ontario Securities Commission Rule 61-501, since the aggregate amounts
represent less than 25% of the Company's Market Capitalization,
    EOR Inc.'s President and CEO Mr. Barry Lasker reports "The Company is
very pleased to see so many of our shareholders and management exercise these
warrants and invest their confidence and commitment to the Company's
objectives. Our Company is now in an enviable position of having a robust
amount of cash on hand that is more than enough over the next twelve months to
allow for the orderly execution of our business plan of further development
drilling at St. Johns, further oil field enhancement operations at the
Chaveroo and Milnesand oil fields, as well as the strategic pursuit of
additional oil field acquisitions where the potential for significant EOR
reserves could remain." Mr. Lasker also stated that, in January, the Board had
also approved the Company's capital expenditure plans for 2008 of
approximately $19.0 million (not including contingency allowances of up to
another $10.0 million) related to the development of the St Johns gas field
and the Company's oil fields during the year.

    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.


    Barry D Lasker, CEO


    %SEDAR: 00004538E

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

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Enhanced Oil Resources Inc.

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