Enhanced Oil Resources provides private placement update

    Listed: TSX Venture Exchange (Symbol: EOR)

    HOUSTON, Oct. 11 /CNW/ - Enhanced Oil Resources Inc. (the "Company") is
pleased to announce that it has closed on a first tranche of financing related
to the brokered private placement announced on October 3rd, 2007. The first
tranche contained 9,285,600 Units for total proceeds of $16,714,080 (CDN) and
these proceeds, net of costs, have been delivered to the Company.
    Previously, the Company announced that it had engaged Union Securities
Ltd. (the "Agent") as agent in connection with a private placement of up to
$25,020,000 (CDN) comprised of Units (13,900,000 Units) at $1.80 per Unit (the
"Offering"). Each Unit is comprised of 1 common share and one-half of one
non-transferable common share purchase warrant, each whole warrant entitling
the holder to purchase an additional common share at $2.50 per share for a
period of 24 months from Closing. The Company also proposed to grant the Agent
the Over-Allotment Option to sell up to $10,000,000 (CDN) in additional Units.
    The Agent with regard to its services is entitled to receive (a) a cash
commission equal to 7% of the aggregate gross proceeds of the Units sold
pursuant to the Offering and the Over-Allotment Option including in respect of
any Units purchased by the Agent as principal; and (b) Agent's Compensation
Options equal to 8% of the aggregate number of Units sold pursuant to the
Offering and the Over-Allotment Option, where each Agent's Compensation Option
entitles the Agent to purchase one Unit of the Company at $1.80 (CDN) per Unit
for a period of 24 months from the applicable Closing Date.
    The first tranche (9,285,600 Units) of the Offering closed in Toronto on
October 10, 2007. All securities issued in connection with the first tranche
closing are subject to a hold period expiring February 11, 2008.
    It is anticipated that the proceeds from this placement will be used for
additional oil field acquisitions, development activity at the Milnesand and
Chaveroo oilfields, development of the St. Johns Helium and CO2 gas field and
for general working capital.

    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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