HOUSTON, Oct. 16, 2014 /CNW/ - Further to its news release
of September 29, 2014, Enhanced Oil
Resources Inc. (TSX-V: EOR; OTCQX: EORIF) ("EOR") announces the
completion of the sale by its indirect wholly-owned subsidiaries,
Ridgeway Arizona Oil Corp. and EOR Operating Company (collectively
with EOR, the "Company") of all of the Company's rights, title and
interest in the Crossroads oilfield, located in Lea County, New Mexico to an unrelated third
party group consisting of Desert Production, Inc. of Midland, Texas and Penroc Oil Corporation of
Hobbs, New Mexico (together, the
"Purchaser") for US$10.0 million
cash, subject to certain post-closing adjustments and conditions.
Riviera-Ensley Energy Advisors ("Riviera"), an arm's length full
service acquisition and divestiture transaction advisor serving the
energy sector for over 20 years, acted as the marketing agent and
broker for the Company in connection with the sale and has been
paid a fee of US$210,000 in cash for
conducting the marketing and solicitation of bids for the property
interests.
The sale closed on October 16,
2014 with a post-closing settlement following receipt of all
required state of New Mexico
regulatory approvals. The effective date for the transaction
is September 1, 2014, being the date
upon which the Purchaser assumes financial obligations and
consequences arising from the operation of the field.
The Company intends to use the proceeds from the disposition of
the Crossroads field to pursue new opportunities that diversify the
Company's asset base, pay accounts payable and for general
corporate purposes.
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 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.
ON BEHALF OF THE BOARD OF DIRECTORS
(signed)
Barry D Lasker, CEO
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 Company intends to use the proceeds
from the disposition of the Crossroads field to pursue new
opportunities that diversify the Company's asset base, pay accounts
payable and for general corporate purposes.
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
Inc. believes that the expectations reflected in such
forward-looking statements are reasonable, Enhanced Oil Resources
Inc. can give no assurance that such expectations will prove to be
correct. Assumptions upon which such forward-looking statements are
based include that there will be sufficient proceeds from the
disposition of the Crossroads field to pursue new opportunities
that diversify the Company's asset base, pay accounts payable and
for general corporate purposes. Risks and factors that could
cause actual results to vary materially from results anticipated by
such forward-looking statements include that the proceeds of
disposition are not sufficient to pursue new opportunities that
diversify the Company's asset base, pay accounts payable and for
general corporate purposes, and that no new opportunities that
diversify the Company's asset base are pursued or that any such
opportunities that are pursued are not successful. 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 Inc.'s 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 Inc. 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.
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.