Receives Preliminary Extension For Final 2 Well Drilling Commitment
HOUSTON, TX, Dec. 2 /PRNewswire/ - Enhanced Oil Resources Inc. (TSX-V: EOR) today announced that it has completed a three well appraisal drilling program at the St Johns Helium and CO2 Field in Apache County, Arizona. The Company has also received notice of preliminary approval to extend, by 12 months, the due date for completion of the final 2 remaining obligation wells required by the St Johns Unit Agreement.
The 2010 drilling program focused on the high helium and CO2 content within the Amos Wash interval that was proved to be productive in the area by previous wells. All three wells (11-3-29X, 12-22-29 and the 11-6-30) have now been drilled to the base of the Amos Wash interval and encountered excellent reservoir characteristics and flowed CO2 gas during drilling. All three wells will be flow tested over the next few weeks and will be logged at a later date. The Company's independent reserve engineers have previously estimated that approximately 14 bcf of CO2 gas can be recovered per section under full 160 acre development. The average helium content within the Amos Wash interval in this area is approximately 0.74%.
The Company also reported today that it has, subject to final formal approval, received a preliminary extension to drill the remaining two wells under the original 5 well St Johns Unit Agreement requirement. The location of the two remaining wells will be determined at a later date but may target additional Amos Wash or Granite Wash reserves within the high helium northern area of the field or may be used in conjunction with the Greenfire Energy joint venture for the purposes of evaluating the potential of helium and CO2 contained within the deeper granitic basement at depths not previously drilled in the area.
Mr. Barry Lasker reports "We are pleased to report that the 2010 drilling program at St Johns has been completed on time and within budget. These wells look to be excellent Amos Wash wells and we hope to confirm this during future flow testing. We completed this drilling program utilizing our current cash resources and at per well costs substantially below those we incurred in the 2007 and 2008 drilling programs. Our St Johns field drilling team has done an excellent job completing these wells within budgets and I congratulate the team on a job well done."
About Enhanced Oil Resources Inc.
Enhanced Oil Resources Inc. is engaged in 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 CO2 resource exploration and production through property interests it controls in approximately 251,000 gross acres of land within the St Johns Helium/CO2 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.|
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.