Listed: TSX Venture Exchange (Symbol: EOR)
HOUSTON, TX, Jan. 10 /CNW/ - Enhanced Oil Resources Inc. (the "Company")
is pleased to provide the following operations and corporate update.
Since our last report to shareholders in December the Company has
progressed on several fronts. At the Company's St Johns Helium and CO2 field
in Arizona and New Mexico drilling operations are underway after initializing
drilling on December 28th, 2007. The Forster drilling rig is currently on the
11-29-31 well location. Operations are currently working on the drilling rig
to upgrade pumps. Following completion of this task the well will be drilled
to test the Amos Wash reservoir found productive in offsetting wells. The
Company is also finalizing a contract for a 2nd rig that is expected to be on
location within a week to accelerate the 2008 drilling program. The Company
expects that one or two of these wells will be horizontal wells and will
target the granite wash reservoir, a major productive interval in the field.
Planning for these vertical and horizontal wells is ongoing.
On the testing front the Company has completed a low rate fracture
treatment of the fractured basement section that was found productive in the
11-6-31 well drilled earlier last year. This well had previously tested water
free CO2 with 1% helium at a constant rate of approximately 260mcfpd for
30 days. The lack of water during the initial production period had indicated
that the lowest known gas (LKG) in the field could be lowered by approximately
50ft. During December, the Company perforated the upper Granite Wash interval
that was behind pipe in this well to confirm that the well would produce water
free gas and therefore confirm the potential increase in LKG. The natural
production increase that was obtained from these perforations was nominal,
however the well continued to produce water free gas. The low rate frac
treatment performed on this well was designed to see if production could be
enhanced without water production. The well is currently producing gas and
frac fluid and is slowly cleaning up. We will bring you results of this well
At our Chaveroo and Milnesand oil fields work continues to optimize
production. The Company continues to work over shut-in wells, upgrade the
surface facilities and prepare for the increase in water flooding as a
precursor to the CO2 pilot flood. In conjunction with the field work we have
contracted with FloCO2 Ltd. to provide liquid CO2 and all necessary surface
facilities for the pilot flood. The Company is currently sourcing compressors
to re-inject any produced CO2. All necessary permits are being prepared.
As discussed at the last teleconference call to shareholders the Company
continues with the preparation of documentation for a potential Toronto Stock
Exchange listing. The draft of the NI-51-101 reserve report from Sproule
Engineers has been received and is currently being reviewed in house.
The Company is also pleased to report that it has engaged the services of
Cawley Gillespie and Associates, a respected oil and gas engineering firm to
complete a reserve study on the St. Johns gas field. As part of this process,
Cobb Engineering has been retained to provide an update to the 1999 and 2005
resource studies. Data from the 2007 drilling program is being gathered and
will be sent to Cobb for input into the update.
On the Corporate front the Company has been in discussions with several
Investor Relations firms regarding the preparation of this year's program. An
IR firm has been chosen and we expect a contract to be signed shortly and work
to start in earnest later this month.
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