HOUSTON, Jan. 3, 2012 /CNW/ - Enhanced Oil Resources Inc. (TSX-V: EOR) today announced that, by mutual consent, the Target Closing Date of December 31, 2011 has been extended to January 31, 2012 for the previously announced sale by its subsidiary of all of its rights, title and interests in the St Johns Dome and certain related assets, located in Apache County, Arizona and Catron County, New Mexico, in order to complete two Closing Conditions. The renegotiation of a material third-party contract and one final regulatory approval have yet to be finalized.
Oil Field Operations
The Company's crude oil production has averaged approximately 300 barrels of oil per day (bopd) for December 2011, a decrease of approximately 25% since November. The decrease in production is largely caused by a down-hole failure at the Crossroads 303 well, which was down for the entire month of December. The Company considers this to be a failure of third party material and will vigorously pursue legal remedies should we be unsuccessful in returning the well back to production.
Barry Lasker, President and Chief Executive Officer of Enhanced Oil Resources said: "We are disappointed that the sale was not completed by the amended closing date of December 31st. Both Buyer and Seller continue to be committed to closing this transaction at the earliest opportunity."
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. Such forward-looking statements include, among others, that the purchase and sale agreement is now targeted to close on or about January 31, 2012 and that the closing is subject to a number of Closing Conditions that remain to be completed.
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 purchase and sale agreement will close on or about January 31, 2012, that the Closing Conditions will be completed, that the material third-party contract will be renegotiated and that regulatory approval will be obtained. Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include the failure to close the sale and purchase agreement for whatever reason, failure to complete all of the Closing Conditions by the extended Target Closing Date or at all. Readers should be aware that the list of factors, risks and uncertainties set forth above are not exhaustive. 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.