Enhanced Oil Resources Inc. (TSX-V Exchange Symbol EOR.V) is a Houston based oil company that owns, operates and produces oil from 2 legacy oilfield in the Permian Basin of eastern New Mexico. The Company's vision is to become a leading energy producer in the Permian Basin through development of it's oil reserves by utilizing technology improvements such as well down-spacing, fracture stimulation methods and, longer term, through CO2-EOR enhanced oil recovery. The Company's independent engineering consultants have estimated that these 2 legacy oilfields have produced only 55 Million barrels of oil from a total in-place resource of approximately 320 million barrels. By utilizing modern technology improvements including full field CO2-EOR these fields could produce an additional 60 Million barrels of oil and, once developed, could produce in excess of 10,000 barrels of oil per day.
Enhanced Oil Resources is a producing an average of 68 barrels of oil per day at the end of Q2 2014. The Company has assembled an asset base of legacy oilfields that have considerable potential for reserves and production growth through redevelopment of these assets by well down-spacing and enhanced oil recovery processes. The Company purchased the oil fields for less than 10 cents a barrel of potentially recoverable oil, initiated and completed a successful CO2 pilot flood, commissioned and received independent reserve reports on the EOR-CO2 oil potential and secured a near term supply of CO2 through a "take-or-pay" gas delivery contract with Kinder Morgan CO2 Company, L.P. With the CO2 contract now in hand Enhanced Oil Resources has put in motion the development of the full CO2 flood that is projected to increase production from current levels to over 2,500 barrels per day within 4 years at Milnesand.
Enhanced Oil Resources Inc has initiated the re-development of the Milnesand field in preparation for CO2 injection that is scheduled to begin no later than August 2015. The re-development includes up to 64 producers and 89 injectors. The re-development plan begins by decreasing well spacing from 40 acre spacing to 20 acres spacing to increase reserves and production not previously accessed by the broader well density. The systematic program would consistently increase daily production up to the injection phase and then increase it once again once injection starts. Estimated production over the initial infill development program is:
CO2 Injection starts during the 4th Quarter of 2015 with peak CO2-EOR oil production increasing by an additional 2,500 BOPD in Year 4 of the CO2 flood at Milnesand and an additional 7,500 at Chaveroo.
Enhanced Oil Resources Inc. Asset Base
Permian Basin - Oil - Eastern New Mexico
1. Milnesand- San Andres - Roosevelt County, NM - 6,000 Acres
Discovered in 1956. 93 mmbo in place. Recovered 11 mm bbl oil (mmbo) to date
Proved: 2.0 mmbo; Probable: 4 mmbo; Possible: 8 mmbo for 3,000 acre project
Total field potential under full field CO2 flood: 14 mmbo
2. Chaveroo- San Andres - Chavez County, NM - 28,000 Acres
Discovered in 1952. 180 mmbo in place. Recovered 23 mmbo to date
Total field potential under full field CO2 flood: 34 mmbo
Current Focus: Increase oil production through infill drilling of San Andres Reservoirs
Milnesand and Chaveroo Potential for 250 20 - Acre infill wells
Capex per well - $500,000
Initial Production - 40 bopd
Cumulative production - 38,000 barrels oil per well
Peak Production under infill drilling - 5,500 bopd
Recent Operational and Corporate Highlights
Executed a 5 Year CO2 supply agreement with Kinder Morgan CO2 Company, L.P.
Increased YE 2009 Proven & Probable oil reserves by 1300% to 4.5 mmbo
Increased oil production in 2010 by over 300 %
Generated positive cash flow for 4th Q 2009 and 1st Q 2010