Enhanced Oil Resources Inc. has completed a three well appraisal drilling program at the St Johns Helium and CO2 Field in Apache County, Arizona. The Company has also received notice of preliminary approval to extend, by 12 months, the due date for completion of the final 2 remaining obligation wells required by the St Johns Unit Agreement.

The 2010 drilling program focused on the high helium and CO2 content within the Amos Wash interval that was proved to be productive in the area by previous wells. All three wells (11-3-29X, 12-22-29 and the 11-6-30) have now been drilled to the base of the Amos Wash interval and encountered excellent reservoir characteristics and flowed CO2 gas during drilling. All three wells will be flow tested over the next few weeks and will be logged at a later date. The Company's independent reserve engineers have previously estimated that approximately 14 bcf of CO2 gas can be recovered per section under full 160 acre development. The average helium content within the Amos Wash interval in this area is approximately 0.74%.

The Company also reported today that it has, subject to final formal approval, received a preliminary extension to drill the remaining two wells under the original 5 well St Johns Unit Agreement requirement. The location of the two remaining wells will be determined at a later date but may target additional Amos Wash or Granite Wash reserves within the high helium northern area of the field or may be used in conjunction with the Greenfire Energy joint venture for the purposes of evaluating the potential of helium and CO2 contained within the deeper granitic basement at depths not previously drilled in the area.

Mr. Barry Lasker reports, "We are pleased to report that the 2010 drilling program at St Johns has been completed on time and within budget. These wells look to be excellent Amos Wash wells and we hope to confirm this during future flow testing. We completed this drilling program utilizing our current cash resources and at per well costs substantially below those we incurred in the 2007 and 2008 drilling programs. Our St Johns field drilling team has done an excellent job completing these wells within budgets and I congratulate the team on a job well done."

Tags: Enhanced Oil Resources