Enhanced Oil Resources Provides Operations Update.
HOUSTON, Oct. 16, 2012 /PRNewswire/ - Enhanced Oil Resources Inc. (TSX.V: EOR; OTCQX: EORIF) (the "Company") is pleased to provide the following update regarding the Company's operations for September.
As previously reported, the Company's primary goals for 2012 are to increase production and reserves through infill drilling at the Milnesand oil field, located in Roosevelt County, New Mexico, to evaluate the Chaveroo oil field for potential infill drilling and to further the planning and permitting of a 41 mile CO2 pipeline to connect Kinder Morgan's Cortez CO2 pipeline to our Milnesand and Chaveroo oil fields by September 2015.
Oil production volumes for September averaged 486 barrels of oil per day (bopd), an increase of 80 bopd from August. The increase in production is largely the result of adding production from the recently drilled MSU #522 and MSU #141 lateral wells. The recently completed MSU #123 well, the third well drilled in this current campaign, continues to produce load water at high water rates with minimal oil cut. We will continue to monitor the production and will provide further updates as they occur. The MSU #522 and MSU #141 wells continue to produce at a combined stabilized rate of approximately 95 bopd, in line with our pre-drill estimates of production.
Also at Milnesand field a workover rig is currently moving to the MSU #523 well location to commence preparation for sidetracking the well in November. The Company plans to drill a 4,000 foot lateral sidetrack from the MSU #523 vertical wellbore that is designed to cover three 20-acre infill locations.
At the Crossroads oil field, the Company returned the CDU #303 well to production in late September after sidetracking around the remainder of a stuck submersible pump, which had been blocking the perforations over the productive zone at approximately 12,000 feet. The side-track drilling operation followed numerous attempts to mill up the obstruction. The well is currently producing oil and water at restricted rates until the CDU #101 well has been re-completed as a water injector well that is required to increase production in the field. The CDU #303 well went down late last year after a routine workover sheared the pins on the pump. Metallurgical testing of the sheared pins showed no definitive signs of fatigue and could not substantiate any significant evidence of defective workmanship in the servicing of the equipment, which had been installed in the well bore in November 2009. Subsequent well bore deviation surveys indicated that a severely deviated well bore was most likely the cause of the incident.
As previously discussed, the Company is in the process of converting the CDU #101 well from a low rate gas producer (approximately 160 mcf/day) to a second water injector for the Crossroads Devonian Unit. The CDU #101 is currently being worked over and is expected to be available to receive water by the end of October. The addition of a second water injector at Crossroads will increase our water handling capacity from approximately 8,000 barrels of water per day to an estimated 14,000 barrels of water per day. It is expected that once the CDU #101 is fully operational, the CDU #302 and the CDU #303 wells can be brought back on line at maximum rates.
Initial survey efforts for the 41 mile CO2 pipeline connecting the Company's Milnesand and Chaveroo oil fields to Kinder Morgan's Cortez Pipeline are complete. The Company will continue design efforts and finalize rights of way over the next six months.
About Enhanced Oil Resources Inc.
Enhanced Oil Resources Inc. (TSX.V: EOR; OTCQX: EORIF) trades in Canada on the TSX Venture Exchange under the symbol "EOR" and in the United States on OTCQX under the symbol "EORIF". 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.
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.
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, that the lateral wells will be drilled as expected, that the lateral wells will result in commercial production and that oil production will continue as reported. 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
SOURCE Enhanced Oil Resources Inc.
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