September 2, 2008

Enhanced Oil Resources, Inc. Announces Start-Up of CO(2) Injection at Milnesand (San Andres) Unit, Roosevelt County, New Mexico

HOUSTON, Sept. 2 /PRNewswire-FirstCall/ -- Enhanced Oil Resources, Inc. (TSX-V: EOR) today announced that CO(2) injection at the Company's wholly owned Milnesand (San Andres) Unit oil field located in Roosevelt County, New Mexico commenced on August 25, 2008 and over the last 7 days injection has stabilized at a daily rate of approximately 0.4 million cubic feet per day (mmcfpd).

As previously announced, the Milnesand (San Andres) Unit covers 5,000ÃӚ“šÃƒÆ’“šÃƒ“š acres in a 5,500 acre mature oilfield that is currently producing approximately 70 barrels of oil per day and has produced approximately 12ÃӚ“šÃƒÆ’“šÃƒ“š million barrels of oil to date, leading to only 13% recovery of the original 95 million barrels of oil in place. The Company's independent EOR consultants, Advanced Resources International (ARI), completed a proprietary screening study of the field for the Company and in a report dated March 19, 2007 has estimated that the field could recover an additional 18 million barrels of oil using state-of-the-art CO(2) injection processes. These are categorized as contingent resources under NI51-101. ARI also estimates that the field has the potential, once fully flooded, to reach an EOR peak production rate of over 5,000 barrels of oil per day. Under NI51-101 Contingent Resources are those quantities of oil and gas estimated on a given date to be potentially recoverable from known accumulations but are currently not economic.

Mr. Barry Lasker reports "The start up of CO(2) injection at Milnesand is a milestone event for the Company. The anticipated positive response from the pilot project will allow significant value to be added to the Company and will enable the Company to proceed with full-field CO(2) flood development as soon as our St Johns pipeline is in operation. As we have previously stated, our mission is to build a reserve base in New Mexico where significant EOR potential exists and to leverage our vast CO(2) resource into opportunities that will add significant value to the Company. We will provide updates over the coming months as we await a positive flooding response."

   About Enhanced Oil Resources   ----------------------------  

Enhanced Oil Resources, Inc. (EOR) is an early-stage company focused on developing the St. Johns Helium/CO(2) field, and producing oil via enhanced oil recovery processes using CO(2) injection in the United States. The Company owns and operates the St. Johns Field, the largest undeveloped helium and CO(2) field in North America.

   Forward-Looking Statement   -------------------------  

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, 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.


Enhanced Oil Resources Inc.

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