HOUSTON, March 18 /CNW/ - Enhanced Oil Resources, Inc. (the Company or
EOR, Inc.) (TSX-V: EOR) today announced the execution of a Memorandum of
Understanding (MOU) for the development of the Company's pipeline project with
privately held SunCoast Energy Corporation (SunCoast). The proposed pipeline
will run 350 miles from the Company's St. Johns Helium/CO(2) field located on
the borders of Arizona and New Mexico, to the Permian Basin of New Mexico and
West Texas. The proposed pipeline will initially transport 350 million cubic
feet per day (MMcfpd) of CO(2) for injection into depleted oil fields located
within the Permian Basin. The pipeline is expected to be designed to transport
500 MMcfpd once expanded to full capacity. Details of the agreement include:
- SunCoast will have the rights to develop, own, operate and manage the
- EOR, Inc. has reserved the rights to the first 175 MMcfpd of capacity
in the pipeline to inject into its own oilfields in the basin and for
other targeted oilfields.
- EOR, Inc. will have the right to increase its capacity rights in the
pipeline upon completion of the expansion.
- EOR, Inc. will deliver to SunCoast a reserve report which will
underpin the construction of the pipeline. The reserve report,
prepared jointly by William M. Cobb & Associates and Cawley,
Gillespie & Associates, is slated for completion in mid-to-late
- Both EOR, Inc. and SunCoast have certain obligations to fulfill over
a six-month period following delivery of the reserve report.
EOR, Inc.'s President and CEO Barry Lasker said: "The execution of the
pipeline MOU with SunCoast represents the achievement of another benchmark for
our Company. We continue to execute our plan to actualize production from St.
Johns by late 2010, and we look forward to working with John Baker and the
SunCoast Chairman and CEO John Baker said: "The pipeline will connect a
new indigenous supply source of CO(2) to enhanced oil recovery projects
located in the Permian Basin, resulting in improvements in oil recovery
efficiency thus increasing domestic oil production. We are confident the
pipeline project will be supported by the producer community in the Permian
Basin and look forward to obtaining firm capacity commitments sufficient to
support the pipeline project."
About Enhanced Oil Resources
Enhanced Oil Resources, Inc. is an early-stage company focused on
developing the St. Johns Helium and CO(2) field, and producing oil via
enhanced oil recovery processes using CO(2) injection in the United States.
The Company owns and operates the St. Johns Field, the largest undeveloped
Helium and CO(2) field in North America.
About SunCoast Energy Corporation
SunCoast Energy Corporation is a privately held Texas corporation with
extensive knowledge and experience in the pipeline business. Mr. Baker,
Chairman and CEO of SunCoast, has held various senior management and executive
positions in the natural gas industry, including serving as President and COO
of United Gas Pipe Line Company and Executive Vice President of United Gas
Holding Company, Inc., now known as Gulf South Pipeline. Prior to coming to
United, Mr. Baker served as EVP of Operations of Arkla's Pipeline Group,
President and COO of Arkla Energy Resources and President of Arkla Chemical
Company, all divisions of Arkla, Inc, now a part of CenterPoint Energy. For
more information, please contact John Baker at 713-965-9888 or email
Certain statements contained herein are forward-looking statements,
including statements relating to Enhanced Oil Resources' 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 information because it is possible that expectations,
predictions, forecasts, projections and other forms of forward-looking
information will not be achieved by Enhanced Oil Resources. By its nature,
forward-looking information involves numerous assumptions, inherent risks and
uncertainties. A change in any one of these factors could cause actual events
or results to differ materially from those projected in the forward-looking
information. 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. Forward-looking statements are based on current expectations,
estimates and projections that involve a number of risks and uncertainties
which could cause actual results to differ materially from those anticipated
by Enhanced Oil Resources and described in the forward-looking statements or
information. The forward-looking statements are based on a number of
assumptions which may prove to be incorrect. 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
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.
Retail investors please call Don Currie, on 1-888-990-3551. Institutional
investors please call Stephanie Feldman of EnerCom, Inc. at (303) 296-8834.