June 20, 2008
Enhanced Oil Resources Acquires Additional New Mexico Oilfield
Enhanced Oil Resources has acquired an additional New Mexico oilfield that the company's independent consultants have identified as having considerable enhanced oil recovery potential. Total purchase price at closing was $4.59 million.
The acquisition is the third of several oilfields the company is targeting as part of its strategy to build a substantial enhanced oil recovery (EOR) reserve base in the Permian Basin for CO2 flooding.
The acquisition will be immediately accretive to cash flow and increases the company's daily production to approximately 170 barrels of oil.
The acquisition covers an 800-acre unit in a 2,400-acre mature oilfield. The unit is currently producing approximately 38 barrels of oil per day (bopd) and, to date, has produced approximately 22 million barrels of oil (mmbbl) out of the field's previously recovered total of 44mmbbl, a 35% recovery of the estimated 125mmbl of original oil in place.