Enhanced Oil Resources provides the following update on operational activity.

As previously reported the Company has been actively pursuing a production enhancement program at its oilfields in New Mexico with the purpose of increasing near term oil production in a cost effective manner at a time when costs for goods and services have been reduced. The Company is pleased to report that it has re-entered the Crossroads 101 well, a formerly idle water disposal well and has run a suite of modern cased hole logs over several zones of interest identified on the original, vintage, well logs. Several zones of interest have been confirmed, including an interval of 140 ft gross where 5 potential pay intervals totaling 40 ft net have been identified. A zone of 20 ft thick has been perforated and tested over the last few days with production from this zone stabilizing at a rate of approximately 600 mcf per day gas and 60 barrels of 53 degree condensate per day for a total of 160 barrels of oil equivalent per day with a flowing tubing pressure of 750 psi. The Company has applied to the New Mexico OCD for a change of status for the 101 well and will begin to build separate surface facilities for this production. The well is currently shut in pending the OCD approval. The Company has decided to run this suite of cased hole logs on all wells in the Crossroads field at such times as each well is down for work-over activity.

Mr. Barry Lasker reports,"We continue to have positive results at our Crossroads field with current production increasing by approximately 160 boepd with this latest development. The initial results from the cased hole logging suite at the 101 well has highlighted several zones of potential production and the initial production achieved from this first zone augurs well for further positive developments at Crossroads. The production at the 101 well is expected to increase our daily production well above the 520 boepd averaged for the first quarter of 2010. We are continuing to review additional opportunities at Crossroads, Milnesand and Chaveroo with our stated goal of achieving 1,000 boepd by the end of 2010. We will provide additional information as it comes to hand."

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