Enhanced Oil Resources Inc. Provides Update on Operations and Sale of St. Johns Assets
HOUSTON, Dec. 9, 2011 /PRNewswire/ - Enhanced Oil Resources Inc. (TSX-V: EOR) today announced that, by mutual consent, the Target Closing Date of December 8, 2011 has been extended to December 31, 2011 for the previously announced sale by its subsidiary of all of its right, title and interests in the St Johns dome and certain related assets, located in Apache County, Arizona and Catron County, New Mexico, in order to complete a number of Closing Conditions that remain to be completed, including the delivery of certain material consents, the renegotiation of a material third-party contract and regulatory approval.
Oil Field Operations
The Company's crude oil production has averaged approximately 402 barrels of oil per day (bopd) for the months of October and November, a decrease of approximately 10% since September. The decrease in production is largely caused by the reduction in workover rigs during the fourth quarter, as fewer wells were worked over during this period. At Crossroads, fourth quarter production averaged approximately 275 boepd, a reduction of 20 boepd since September. During the fourth quarter the Company has focused its efforts on reducing near term remedial activity in order to maximize cash for use at the upcoming Milnesand infill program.
At Milnesand we have lined up the bulk of services to commence our lateral drilling program and expect to have a rig on location in the next few weeks, pending final closing of our sale of St Johns assets mentioned above.
Barry Lasker, President and Chief Executive Officer of Enhanced Oil Resources said: "We are disappointed not to have all our approvals for the sale of St Johns completed by the amended closing date of December 8th. Both Buyer and Seller are currently waiting on 3rd party responses to three pre-closing conditions that have not been returned to date. The extension to December 31 will hopefully provide the required time for these to be returned. We thank our shareholders for their patience while we work towards a quick closing."
About Enhanced Oil Resources Inc.
Enhanced Oil Resources Inc. is an early-stage company, with a principal goal of increasing crude oil and natural gas production through enhanced oil recovery ("EOR") and infill drilling projects it is initiating in the Permian Basin on oil fields acquired by the Company in 2007 and 2008 for that purpose.
Forward-Looking Statements
Certain statements contained herein are "forward-looking statements" and "forward-looking information" under applicable securities laws, including statements regarding beliefs, plans, expectations or intentions regarding the future relating to Enhanced Oil Resources Inc.'s operations, business prospects, expansion plans and strategies. Such forward-looking statements include, among others, that the purchase and sale agreement is now targeted to close on or about December 31, 2011 and that the closing is subject to a number of Closing Conditions that remain to be completed.
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 statements because it is possible that expectations, predictions, forecasts, projections and other forms of forward-looking information will not be achieved. Forward-looking statements are based on the opinion and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. 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. Assumptions upon which such forward-looking statements are based include that the purchase and sale agreement will close on or about December 31, 2011, that the Closing Conditions will be completed, that the material consents will be delivered, that the material third-party contract will be renegotiated and that regulatory approval will be obtained and, at Milnesand, that the lateral drilling program will commence when expected. Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include the failure to close the sale and purchase agreement for whatever reason, failure to complete all of the Closing Conditions by the extended Target Closing Date or at all and, at Milnesand, failure to commence the lateral drilling program when expected or at all. 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 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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