Enhanced Oil Resources Inc. provides update on operations and sale of St. Johns assets

Source: Enhanced Oil Resources Inc.

Enhanced Oil Resources Inc. (TSX-V: EOR.V) today announced that, by mutual consent, the Target Closing Date of December 31, 2011 has been extended to January 31, 2012 for the previously announced sale by its subsidiary of all of its rights, 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 two Closing Conditions. The renegotiation of a material third-party contract and one final regulatory approval have yet to be finalized.

Oil Field Operations

The Company's crude oil production has averaged approximately 300 barrels of oil per day (bopd) for December 2011 , a decrease of approximately 25% since November. The decrease in production is largely caused by a down-hole failure at the Crossroads 303 well, which was down for the entire month of December. The Company considers this to be a failure of third party material and will vigorously pursue legal remedies should we be unsuccessful in returning the well back to production.

Barry Lasker , President and Chief Executive Officer of Enhanced Oil Resources said: "We are disappointed that the sale was not completed by the amended closing date of December 31st . Both Buyer and Seller continue to be committed to closing this transaction at the earliest opportunity."

Sign up for PennEnergy's eNewsletters
For Email Newsletters you can trust

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs