EOR Inc. Provides Shareholder Update



    HOUSTON, Aug. 15 /CNW/ - Enhanced Oil Resources (the "Company") is
pleased to provide the following update to shareholders:
    In the 2 brief months since the last update, Management of the Company
has once again made progress on several fronts key to increasing market and
shareholder value.
    In the previous Shareholder update of June 6th, 2007, the Company
discussed various key objectives for the second half of 2007. They included,
among other things, the completion of a major financing, the hiring of key
personnel such as production engineers, drilling engineers and CO(2) flood
experts required for the design and initiation of our proposed pilot projects,
completing further oil field acquisitions, further drilling and testing at our
St Johns Helium/CO(2) source field and potential agreements for pipelines, 3rd
party gas contracts and agreements on the construction of a helium separation
plant.

    
    Our progress in all areas is as follows:

    1.  The main objective during the period has been to raise sufficient
        funds to provide the Company with the financial strength to complete
        the majority of the objectives listed above. To that end, we were
        successful in raising approximately CDN $34 million before costs. The
        funding was done by way of both a non-brokered placement of just
        under $9 million and a brokered placement through Union Securities
        Ltd. of $25 million. The Company was extremely well received by both
        the retail and institutional communities, both in North America and
        London with the result having the placements heavily oversubscribed.
        The Company is now cashed up to complete its key objectives for the
        foreseeable future, and together with the outstanding warrants we
        will remain in a strong financial position from which to negotiate
        potential transactions that may come our way. Should we desire
        project financing in the future we are now in a position where we can
        pursue favorable terms that would be in the best interest of our
        shareholders.

    2.  In the June report the Company mentioned the binding letter of intent
        for our second oil field acquisition. That acquisition has now been
        completed and announced. The Company's independent engineering firm
        has estimated that an additional 18 million barrels of oil could be
        recovered from this field through the injection of approximately 40
        mmcfpd of CO(2). The field is currently producing approximately 75
        barrels per day and if a successful CO2 flood is implemented could
        produce up to 5,000 barrels of oil per day. The Company continues to
        identify and pursue additional fields. Our objective is to purchase a
        resource of over 100 million barrels of potentially recoverable EOR
        oil by the end of the calendar year. In each case these reserves are
        categorized as contingent resources under NI51-101. Under NI51-101
        Contingent Resources are those quantities of oil and gas estimated on
        a given date to be potentially recoverable from known accumulations
        but are currently not economic.

    3.  Well completions, testing and drilling has restarted at the St Johns
        field. The Company is working on releasing the results of the 6 wells
        not announced in the earlier 12 well program.

    4.  Management continues to identify and interview key personnel such as
        operations engineers and C02 flood experts. We expect to announce a
        key addition to our team within the next week.

    5.  Discussions on 3rd party gas contracts have been initiated with
        numerous parties showing interest in obtaining our CO(2). The Company
        is mindful that long term take-or-pay gas contracts are key to having
        a pipeline company agree to finance and build the pipeline. We
        anticipate having 3rd party gas contracts in place in the 4th quarter
        of this year.

    6.  With the hiring of key people, the company will move forward with the
        planning and commencement of pilot project floods on our two oil
        fields. Data from our two fields is being collected and project
        design will start soon thereafter. Actual floods are expected to
        start within the next few months. The objective of any pilot flood is
        to identify a field respond to C02 injection. Our two fields have the
        same geology as the majority of other successful floods in the
        Permian basin and as a result we are confident that positive results
        will be achieved. Each pilot flood is expected to last between 3 and
        12 months.

        For future reference, it is important to understand the value of a
        successful flood. EOR has purchased millions of barrels of contingent
        resources for pennies on the dollar. The most efficient way to
        recover the remaining oil is through the use of C0(2) and that is
        where we have our significant industry advantage. Once a successful
        pilot flood is achieved we believe we will be in a position whereby
        we can move our contingent resources into a proven undeveloped
        category and at the same time increase the value of the purchased
        fields. By successfully executing our plan, the value of the
        company's assets should grow substantially. Revenues from production
        will be a major factor in our near term and long term success.

    7.  Discussions with parties for the construction and operation of a
        helium plant have also started. This will take some time and will
        hopefully these discussions will be completed within the next few
        months.

    8.  We are continuing the development of our new website and we expect to
        have this up and running shortly.
    

    As management moves forward with a number of initiatives, we believe the
progress being made is substantial. The completion of the recent placements
has put the company in a position where we can move forward in all areas. As
mentioned in earlier reports, this project has an extremely expensive cost
basis. Various methods of financing are being considered and further financing
will be pursued to ensure we continue to meet our objectives. Many of the
going forward costs will be done by way of third party ventures but field
development and oil field acquisition will be left to us. We will pursue
future financings with the idea of keeping dilution to a minimum.
    We continue to move forward on many of our key objectives and we expect
to provide additional news on many items in the near term.
    As always, we thank you for your patience, loyalty and your continued
support as we move forward.

    Enhanced Oil Resources Inc. is a development stage, enhanced oil recovery
(EOR), company that controls approximately 200,000 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

    (signed)
    Barry D Lasker, CEO

    THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

    %SEDAR: 00004538E




For further information:

For further information: Don Currie on 1-888-990-3551

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Enhanced Oil Resources Inc.

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