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Enhanced Oil Resources Inc. Joint Venture Partner Receives $2 Million DOE Grant for CO(2)-based Geothermal Research at St Johns Dome in Arizona

September 23, 2010

HOUSTON, Sept. 23 /PRNewswire-FirstCall/ – Ridgeway Arizona Oil Corp. (Ridgeway), a wholly owned subsidiary of Enhanced Oil Resources Inc. (TSX-V), (the “Company”) is pleased to announce the initial investigation and evaluation of the St Johns Dome as a potential site for low-temperature CO(2)-based geothermal power production technologies.

Ridgeway has been informed that its joint venture partner, GreenFire Energy, has received notice of the award of a $2.0 million grant from the U. S. Department of Energy’s (DOE) Geothermal Technologies Program (See http://apps1.eere.energy.gov/news/progress_alerts.cfm/pa_id=401). This grant, combined with Ridgeway’s contributions, will be focused on initiating research and potential development at the St Johns Dome for CO(2) based geothermal energy. This is the first geothermal project of its kind that has received DOE funding to use CO(2) as the geothermal fluid instead of water.

The St Johns Dome, located in Apache County, Arizona and Catron County, New Mexico, is believed to be the largest undeveloped CO(2) and helium resource in North America. Ridgeway operates approximately 235,000 acres within the St Johns Dome and has drilled in excess of 40 exploration and appraisal wells over the past fifteen years. “The Company remains focused on delivering CO(2) to Permian Basin for its enhanced oil recovery projects and extracting our helium resource,” Mr. Barry Lasker reports. “However, the potential to produce significant amounts of renewable energy and sequester CO(2) within the St Johns Dome as well is an exciting opportunity that we are eager to evaluate.”

The St. Johns Dome is considered to be an optimal location at which to generate CO(2)-based geothermal electricity. This is due to its combination of a large volume of low cost natural CO(2), the potential presence of a thermal reservoir underlying the dome area and a local connection into the power grid. The region in which the St. Johns Dome is located also contains six major coal-fired power plants that collectively emit about 90 million tons of CO(2) per year. If carbon capture technologies are deployed in the future, these facilities can provide the GreenFire JV with additional CO(2) for added power production, while sequestering that CO(2) at the same time. As power plants around the world begin implementing carbon capture and sequestration, many additional sites for CO(2)-based geothermal energy projects may become available.

“Exactly one year ago we announced our joint venture agreement with GreenFire Energy,” stated Mr. Barry Lasker. “It is exciting to see them receive this award and know that we are one step closer to investigating their technology. We shall provide further details as they come to hand.”

    About Enhanced Oil Resources Inc.
    ---------------------------------

Enhanced Oil Resources Inc. is an early-stage company, with two principal business segments of

    (i)    Crude oil and natural gas production through enhanced oil recovery
           ("EOR") projects it is initiating in the Permian Basin on oil
           fields acquired by the Company in 2007 and 2008 for that purpose.
    (ii)   Helium and CO(2) resource exploration and production through
           property interests it controls in approximately 235,000 gross
           acres of land within the St Johns Helium/CO(2) field in Arizona
           and New Mexico, and where the Company is developing what is
           thought to be the largest undeveloped helium and carbon dioxide
           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 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 the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Enhanced Oil Resources Inc.


Source: newswire



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