Enhanced Oil Resources Inc. February 2010 Production at 585 BOPD
HOUSTON, March 2 /PRNewswire-FirstCall/ - Enhanced Oil Resources Inc. (TSX-V: EOR) today provides the following update on corporate and operational activity.
As previously reported, the Company has been actively pursuing a reactivation program at the Company's Crossroads, Milnesand and Chaveroo oilfields in New Mexico. In July 2009, production enhancement programs were commenced for the workover and reactivation of existing non-producing wells, with initial focus on the Crossroads Devonian Unit. As last reported, the Company had increased total Company owned production from an average of 186 barrels oil per day (BOPD) in July 2009 to 510 BOPD in January 2010. Average production for the month of February was 585 BOPD, an increase of 15% over January rates. This compares to production rates of 180 BOPD and 193 BOPD for January and February 2009, respectively.
At the Company's 98.5% owned Crossroads Devonian Unit, the Company has recompleted 6 additional wells following its purchase in July 2007. At the time of purchase, this field was producing an average of 36 BOPD from 1 well. Current production is averaging 490 BOPD for the month of February, an increase of 58 BOPD from January. In addition, we currently have 2 wells shut in due to high produced water rates. Each of these wells is capable of producing an additional 25 to 30 BOPD. These wells will be put back on production again once we increase our water handling system at Crossroads. The Company continues to review additional workover and recompletion opportunities within the Crossroads Unit and anticipates acting on those opportunities once an increase in water handling is achieved. As a result of the success with activities in this field, the Company has engaged a geophysical company to acquire and process a 3 Dimensional seismic survey over the Field to further define additional productive potential within the Devonian productive zone and shallower zones that have produced in nearby wells. The survey is expected to commence in the 2nd or 3rd quarter of 2010.
At the Company's Milnesand San Andres Unit and Chaveroo San Andres field, the Company has now completed a 20 well workover program that was announced in early February. That workover program is the first of up to 50 wells that the Company anticipates bringing back on production over the next 6 months. Current production increases at Chaveroo and Milnesand are approximately 40 bopd, however, additional field work is ongoing to optimize individual well performance that could increase this rate.
Mr. Barry Lasker reports "We continue to have positive results with our workover programs at Crossroads, Milnesand and Chaveroo with current production increasing by approximately 75 BOPD over the average for the prior month. We also expect to be able to add production from the Crossroads field once we complete additions to increase our water disposal capacity. This is the 6th significant production increase in as many months and we look forward to reporting additional production increases in the future."
"We have previously reported that the Company is generating positive cash from operations as a result of increasing oil production, improved oil pricing and reductions in lease operating expenses (per unit of production) and in general and administrative costs. The 585 BOPD average daily rate for the month of January was an historical high for the Company and we will continue to press forward with our reactivation program at Crossroads, Milnesand and Chaveroo fields to further add to this number."
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 secondary and 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 251,000 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
(signed)
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.
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