HOUSTON, June 17 /PRNewswire-FirstCall/ - Enhanced Oil Resources Inc. (TSX-V: EOR) today provides the following update on operational activity.
As previously reported the Company has been actively pursuing a production enhancement program at its oilfields in New Mexico with the purpose of increasing near term oil production in a cost effective manner at a time when costs for goods and services have been reduced. The Company is pleased to report that it has re-entered the Crossroads 101 well, a formerly idle water disposal well and has run a suite of modern cased hole logs over several zones of interest identified on the original, vintage, well logs. Several zones of interest have been confirmed, including an interval of 140 ft gross where 5 potential pay intervals totaling 40 ft net have been identified. A zone of 20 ft thick has been perforated and tested over the last few days with production from this zone stabilizing at a rate of approximately 600 mcf per day gas and 60 barrels of 53 degree condensate per day for a total of 160 barrels of oil equivalent per day with a flowing tubing pressure of 750 psi. The Company has applied to the New Mexico OCD for a change of status for the 101 well and will begin to build separate surface facilities for this production. The well is currently shut in pending the OCD approval. The Company has decided to run this suite of cased hole logs on all wells in the Crossroads field at such times as each well is down for work-over activity.
Mr. Barry Lasker reports, "We continue to have positive results at our Crossroads field with current production increasing by approximately 160 boepd with this latest development. The initial results from the cased hole logging suite at the 101 well has highlighted several zones of potential production and the initial production achieved from this first zone augurs well for further positive developments at Crossroads. The production at the 101 well is expected to increase our daily production well above the 520 boepd averaged for the first quarter of 2010. We are continuing to review additional opportunities at Crossroads, Milnesand and Chaveroo with our stated goal of achieving 1,000 boepd by the end of 2010. We will provide additional information as it comes to hand."
About Enhanced Oil Resources Inc. ---------------------------------
Enhanced Oil Resources Inc. is an early-stage company, with two principal business segments of
(i) Crude oil and natural gas production through enhanced oil recovery ("EOR") projects it is initiating in the Permian Basin on oil fields acquired by the Company in 2007 and 2008 for that purpose. (ii) Helium and CO(2) resource exploration and production through property interests it controls in approximately 251,000 gross acres of land within the St Johns Helium/CO(2) field in Arizona and New Mexico, and where the Company is developing what is thought to be the largest undeveloped helium and carbon dioxide field in North America. Forward-Looking Statement -------------------------
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 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 the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Enhanced Oil Resources Inc.