Enhanced Oil Resources, Inc. (OTCQX: EORIF; TSXV: EOR) engages in the acquisition, exploration,and development of natural resource properties in the Southwestern United States. The company had, until January 2012, two segments: Helium and CO2 resource segment and Crude oil and natural gas production segment.
On January 31, 2012, EOR sold all its interests in the Helium and CO2 resource segment when it closed the sale of all its rights, title and interests in the St Johns dome and certain related assets pursuant to a purchase and sale agreement executed with Kinder Morgan CO2 Company, L. P., a wholly owned subsidiary of Kinder Morgan Energy Partners, L.P.
The crude oil and natural gas production segment produces oil and gas from three Permian Basin crude oil fields located in eastern New Mexico and certain oilfield properties, the Winters Fields located near Abilene, Texas, which were acquired during the third quarter of 2011.
Enhanced Oil, through EOR Operating Inc., owns a 99% interest in the 4,880 acre Milnesand San Andres Unit and a 100% interest in the adjacent 1,800 acre Horton Federal lease. Milnesand is comprised of approximately 92 wells, of which 47 are capable of production. The Milnesand San Andres Field was purchased for enhanced oil recovery using carbon dioxide (CO2) injection ("CO2 flooding"). In 2007, the company engaged
Advanced Resources International, Inc. ("ARI") to evaluate the potential for CO2 flooding at Milnesand. In 2008 and 2009, EOR completed a pilot CO2 flood project.
Enhanced Oil is now preparing for the development of a full field CO2 flood with an anticipated startup date around September 2015. Current production at Milnesand is approximately 50 bopd.
The company is increasing the well density from 40 acre spacing to 20 acre spacing in an attempt to increase primary recovery. These new wellbores will eventually be used for the CO2 flood at Milnesand.
EOR, through Ridgeway Arizona Oil Corp., owns and operates a 99% interest in approximately 21,000 acres of San Andres units and leases within the 25,000 acre greater Chaveroo Field. This area, which is comprised of approximately 264 wells within multiple unconsolidated operating units and other discrete operating leases, has approximately 65 wells capable of producing. The Chaveroo San Andres Field was purchased for enhanced oil recovery using CO2 flooding. ARI has estimated that full field CO2 flooding at Chaveroo could recover an additional 30 million barrels of oil and could produce as much as 10,000 bopd. EOR has upgraded surface facilities, reactivated several additional wells, converted several wells to water injectors and plugged and abandoned several wells. Current production at Chaveroo is approximately 50 bopd.
The company believes that potential exists at Chaveroo to increase the well density from 40 acre to 20 acre spacing per well in an attempt to increase primary recovery and to eventually use those new wellbores for CO2 flooding.
EOR, through EOR Operating Inc., owns a 98% interest in the 800 acre Crossroads Siluro-Devonian Unit and a 100% interest in an adjacent 160 acre lease. Enhanced Oil reactivated six additional wells and upgraded equipment and facilities. Production has increased to a current rate of approximately 280 bopd.
The company has two wholly-owned and directly held U.S. subsidiaries, Enhanced Oil Resources USA Inc. and Ridgeway Petroleum Florida, Inc. Oil and gas operations of EOR are conducted in two indirectly held, wholly-owned subsidiaries: Ridgeway Arizona Oil Corp. and EOR Operating Company.
The company was founded in 1980. It was formerly known as Ridgeway Petroleum Corp. and changed its name to Enhanced Oil Resources, Inc. in 2007.