Enhanced Oil Resources Inc. last month provided an update regarding the company’s Milnesand pilot CO2 flood and noted that following approval from the State of New Mexico, it plans to begin CO2 injection later this month.

The company is currently in the final phase of the work-over program on all the CO2 pilot area related wells and following transition to 24 hour-per-day water injection, it is believed that the reservoir has approached the pressures needed for a successful CO2 flood.

Enhanced Oil Resources is currently working on the third and fourth wells that will be converted to water injection in order to isolate the CO2 pilot area from the rest of the field. Water flooding on the perimeter of the pilot area will continue for the foreseeable future at a rate expected to be in the range of 600 to 1,000 barrels of water per day. In addition, three of the four pilot producers have been reworked and re-perforated and are currently producing at an average rate of approximately 10 barrels oil per day.

Barry Lasker, CEO of Enhanced Oil Resources commented, “Initial results of the well work have been very encouraging and give us confidence that the reservoir will be receptive to a CO2 flood. We are currently seeing 100-300% increases in production from the pilot area wellwork and fieldwide oil production is up 35% since we took over operatorship.”

“We are excited to be in the final stages of completing the necessary well work on the
Milnesand pilot CO2 project and look forward to initiating the CO2 injection within
the next few weeks.”