HOUSTON, May 22, 2012 /CNW/ - Enhanced Oil Resources Inc. (TSX-V: EOR) is pleased to provide the following update regarding the Company's operations for May.
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 Roosevelt 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 April averaged 394 bopd, an increase of 13 bopd over March. As previously disclosed, the Company had planned to convert the Crossroads 106 well to a water injection well. However, based on the strong results obtained by installing a high rate sub-pump in the 105 well, a similar pump has been tested at the 106 well with consistently solid results. Following an initial flush period, the 106 well appears to have leveled out at a steady 60 bopd. Based on the results to date, it would appear that the 106 well will now be kept as an additional producer. The Company will now look to an additional well to convert to a second water injector at Crossroads. Also, as previously discussed, the Company has been been waiting for the delivery of fit-for-purpose tools to attempt a fishing operation at the 303 well. Those tools have now been delivered and we will move onto location as soon as a workover rig becomes available.
At the Milnesand oil field, planning continues for the three-well lateral program scheduled to commence in late June. In addition, we have begun a workover program to reactivate and convert up to 11 wells to water injectors that will ultimately expand the water injection capacity and increase bottom hole pressures prior to CO2 injection in 2015. We have also initiated a surface facility upgrade program that will increase pump capacity at the Milnesand water handling station.
At the Crossroads oil 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 the second quarter, 2012. At present we are waiting on approvals from 1 surface owner and 2 mineral owners before the crew can begin operations.
At the Chaveroo oil field we have received all well log information not previously owned and we have provided that data to external consultants to perform a field-wide log normalization project in preparation for our resource study at that field.
We continue the surveying and permitting of the Cortez to Milnesand CO2 pipeline. Survey work will be completed in the third quarter, 2012, with rights of way being completed by the end of the year.
About Enhanced Oil Resources Inc.
Enhanced Oil Resources Inc. is an oil and gas development 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:
visit our Website at www.enhancedoilres.com. or please call Don Currie on 1-888-990-3551.