September 9, 2008
Enhanced Oil Resources Inc. Announces Results of 2008 Cawley, Gillespie & Associates Inc. Helium and CO(2) Reserves Report in the Phase I Development of St. Johns Dome
HOUSTON, Sept. 9 /PRNewswire-FirstCall/ -- Enhanced Oil Resources, Inc. (TSX-V: EOR) today announced the results of the 2008 Cawley, Gillespie & Associates Inc. Reserve Report, a reserve evaluation report of the Company owned, Helium (He) and Carbon Dioxide (CO(2)), reserves within the St. Johns He/CO(2) field located in Apache County, Arizona and Catron County, New Mexico.
The Company commissioned Cawley, Gillespie & Associates Inc. to provide a Helium and CO(2) reserve report based on standard SPE-PRMS petroleum reserve reporting guidelines incorporating all geological, reservoir and drilling data collected within the field as of July 1st, 2008. Standard reserve categories of Proved, Probable, Possible and Exploratory were utilized and assigned to each drilling location based on the offset location approach. Field spacing rules dictated that step-out drilling locations be considered on 640-acre spacing. Due to the high probability of future down-spacing, 320-acre drills inside proven 640-acre sections were included in the report as probable reserves. Phase I development of the St. Johns Dome includes 15 years of Helium-rich CO(2) production of 350 million cubic feet per day (MMCFPD) then natural decline thereafter. Additionally, Helium-rich areas of the field were targeted maximizing the value of the project. Based on these criteria, Cawley, Gillespie & Associates Inc. estimated that 4.2 trillion cubic feet (TCF) of Helium-rich CO(2) reserves exist in Phase I development with 2.3 TCF falling in the "proved + probable" classification of which 1.8 TCF is located in proven 640-acre sections of the field. Being CO(2) and Helium, National Instrument 51-101 of the Canadian Securities Administrators does not apply to these reserve calculations and, accordingly, these reserves are not required to be categorized under NI51-101 Canadian securities regulations.
Barry Lasker, President and Chief Executive Officer of Enhanced Oil Resources said: "The results from the Cawley, Gillespie & Associates Inc. reserves report has confirmed that the St. Johns Dome is capable of producing an initial targeted rate of 350 MMCFPD of Helium-rich CO(2) and that considerable upside remains in the field for future expansions. The Company is currently in discussions with potential end users for the delivery of CO(2) into the Permian Basin. In this age of high oil prices there is considerable interest in CO(2) flooding in mature, depleted oil fields. The Company stands ready to develop the St. Johns field in order to capture value associated with CO(2) flooding its own oil fields and to supply additional CO(2) to other producers in the area."
About Enhanced Oil Resources Inc. ---------------------------------
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.
About Cawley, Gillespie & Associates Inc. -----------------------------------------
Based in Texas, USA, Cawley, Gillespie & Associates Inc. is a leading petroleum engineering firm that has provided formal reserve reports for clients since 1961 for properties around the globe.
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 http://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 THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Enhanced Oil Resources Inc.
CONTACT: visit our Website at http://www.enhancedoilres.com/; Retail investorsplease call Don Currie on 1-888-990-3551