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 CO(2) pipeline to connect Kinder Morgan’s Cortez CO(2) 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
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 CO(2 )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
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.