HOUSTON, Aug. 7, 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 August.
As previously reported, the Company's primary goals for 2012 are to add 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.
At the Milnesand oil field, drilling of the MSU #141 infill lateral has been completed and the rig has moved to the MSU #123 well to drill a 1,400 foot infill lateral there. The MSU #123 is currently drilling out the curve prior to initiating the lateral segment of the well. The MSU #141 well was drilled to a total drill depth of 7,040 feet (4,612 ft. true vertical depth) after initiating the lateral component of the well at a drill depth of 4,750 feet (4,631 ft. true vertical depth). The well was drilled through the Upper P3 and P2 reservoirs and encountered oil shows, with fluorescence and cut, over an interval exceeding 1,800 feet. The well has been cased over the interval from 4,300 to 6,900 feet and will be acidized over seven stages. The Company estimates that acidizing and testing will occur within the next few weeks.
On Saturday August 4th the MSU #522 well, the first well drilled in the program was successfully acidized in seven stages over a distance of 2,700 ft. The well is currently flowing back injected water and spent acid, as expected. We will provide additional updates as they occur.
Oil production volumes for July averaged 390 barrels of oil per day (bopd), an increase of 30 bopd from June. The increase in production volumes for July is largely due to a full month of production at both the Crossroads #105 well and the Crossroads #106 well with each well averaging approximately 60 bopd for the month of July. Fishing operations continue at the Crossroads #303 well to retrieve a submersible pump that parted in the well in November. The Company has regained partial circulation and we are confident that we are making progress towards retrieving the remaining nine feet of pump. The Company continues to work on the Crossroads #303 well and is confident that we will be successful in due course.
The Company also announces that the Company's Annual General Meeting is scheduled for August 31, 2012 and shareholder approval will be sought to, among other things, appoint Auditors of the Company, elect Directors, approve the Company's proposed 2012 Stock Option Plan and to authorize and approve the implementation by the Company's Board of Directors of a consolidation of all of the Company's issued and fully paid common shares on a ratio to be determined by the Board of Directors but, in any event, not to exceed six (6) pre-consolidation shares for one (1) post-consolidation share. The Company currently has 160,186,319 common shares outstanding. The share consolidation is being proposed in order to allow the Company greater flexibility in future corporate activities. The Company reserves the option of not proceeding with the proposed consolidation of its issued common shares. The proposed share consolidation will be subject to its acceptance for filing by the TSX Venture Exchange. There will be no change in the Company's name in conjunction with the proposed share consolidation.
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.