Quantcast
Last updated on April 20, 2014 at 14:04 EDT

Enhanced Oil Resources Provides Operations Update

November 15, 2012

HOUSTON, Nov. 15, 2012 /PRNewswire/ – Enhanced Oil Resources Inc. (TSX.V: EOR;
OTCQX: EORIF; FSE: RWP) (the “Company”) is pleased to provide the
following update regarding the Company’s operations for October.

The Company continues execution of its primary business objectives for
2012 of increasing production and reserves through a work over program
at the Crossroads field, infill drilling at the Milnesand oil field,
located in Roosevelt County, New Mexico, evaluating the Chaveroo oil
field for potential infill drilling and furthering 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 October averaged 456 barrels of oil per day
(bopd), a decrease of 30 barrel oil equivalent per day (boepd) from
September. The decrease in production is largely the result of shutting
in the Crossroads #101 wellbore from a low rate gas well of 28 boepd to
convert it to a second water injector. Oil production from the recently
drilled MSU #522 and MSU #141 lateral wells continues at a combined
stabilized rate of approximately 88 bopd, in line with our pre-drill
estimates of production. The MSU #123 well, the third well drilled in
this current campaign, continues to produce water on a rod pump at high
rates with minimal oil cut. While the high fluid level is slowly coming
down we are now looking to install a high rate pump to see if
commercial production can be achieved. A review of the oil shows while
drilling indicates that a highly water charged zone close to the
beginning of the lateral may be impeding production from the toe of the
lateral where excellent oil shows were encountered. We will continue to
monitor the production and will provide further updates as they occur.

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 water injector for the Crossroads Devonian Unit. This will be the
second capacity upgrade to the water handling facilities in the
Crossroads field in three years and is necessary due to our continuing
success in increasing proved developed producing reserves on the Unit. 
The incremental production from the Crossroads CDU #105 and CD#106
wells resulting from the workovers of these wells in 2012 and the
re-drill of the CDU #303 has increased our water handling capacity
requirements necessary to simultaneously produce all the wells in the
field at maximum operating and economic efficiency.  The CDU #101
continues to be worked over and is expected to be connected to receive
water in the next few weeks which, when completed, will also result in
cash flow savings by reducing the cost of transporting and disposing of
excess produced water off lease. The addition of this 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.

The Company recently completed survey efforts on the proposed CO(2) pipeline connecting Kinder Morgan’s Cortez( )line to the Company’s Milnesand and Chaveroo oil fields.  Final survey
results indicate a revised pipeline length of approximately 38 miles. 
Updated cost estimates suggest that the pipeline can be constructed for
less than $20mm.  The Company will proceed with acquiring the necessary
rights of way in early 2013 with permitting work to begin later in
2013.  Delivery of CO(2 )to the Company’s proposed pipeline is schedule to commence no later than
September 2015.

Mr Barry Lasker states “Enhanced Oil Resources continues to increase
corporate values through our lateral infill drilling and work over of
existing wells at Crossroads. We expect further increases in daily oil
production will continue once our second water injector at Crossroads
is on line and when the CDU #303, #102 and CDU #302 are brought on line
in the next short while.  Further infill drilling at Milnesand, where
we have several years of potential drilling activity, is expected to
add to daily production and reserve value when it continues.

Over the next few months the Company expects to highlight our
established 3(rd) party proved hydrocarbon reserve values combined with daily oil
production increases and strong financial position in presentations to
potential investors and current supporters in our efforts to strengthen
our share price and industry market value.”

About Enhanced Oil Resources Inc.
Enhanced Oil Resources Inc. (TSX.V: EOR; OTCQX: EORIF; FSE: RWP) trades
in Canada on the TSX Venture Exchange under the symbol “EOR” in the
United States on OTCQX under the symbol “EORIF” and in Germany on the
Frankfurt Stock Exchange under the symbol “RWP”. 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.

Forward-Looking Statements

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

(signed)

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.


Source: PR Newswire