Enhanced Oil Resources Increases Acreage Position in Chaveroo Oil Field
Enhanced Oil Resources (EOR) announced that it has acquired an additional 3,100 acres of leases within the Chaveroo Oil Field located in Roosevelt County, New Mexico. The acquisition increases EOR’s ownership to approximately 18,000 acres within the 19,000 acre field. An estimated 18 barrels of oil per day (bopd) is expected to be added to the current daily production at Chaveroo. Well purchases were also included in the $650,000 transaction.
The Chaveroo oil field has produced approximately 24 million barrels of oil to date, leading to only 14% recovery of the original 180 million barrels of oil in place. Advanced Resources International (ARI) completed a proprietary review of the field in January 2007 and estimated that an additional 34 million barrels of oil could be recovered if CO2 injection processes were used. ARI also predicts that once the field is flooded, production could top over 10,000 barrels of oil per day. A pilot CO2 flood of the property is planned by the company in the next few months.
EOR President and CEO Barry Lasker reports, "The acquisition of this portion of the field prior to initiating a pilot CO2 flood will allow the Company to add contingent resources at a very reasonable price, a price that would be considerably higher should a positive CO2 pilot flood response be achieved. The consolidation of ownership within the field will significantly simplify future development activity and potentially allow for an expansion of the proposed CO2 pilot flood."
EOR shareholders approved a five-year grant of an 850,000 incentive stock option purchase on September 13, 2007. The EOR Stock Option Plan terms outline the process.
EOR is a development stage, enhanced oil recovery, company that controls approximately 235,000 acres of land within the St Johns Helium/CO2 field in Arizona and New Mexico. The company is developing one of the largest undeveloped resources of helium and carbon dioxide gases in North America. Independent engineering firms have estimated that the St Johns field contains approximately 15 trillion cubic feet of in place resources, with a potential recoverable resource of 5 trillion cubic feet. Success in the project may result in EOR becoming one of North America's largest CO2 suppliers and enhanced oil recovery producers.