Enhanced Oil Extends Sale of St. Johns Assets
Enhanced Oil Resources 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."