HOUSTON,
May 1, 2014 /CNW/ - Enhanced Oil
Resources Inc. (TSX.V: EOR) (OTCQX: EORIF) ("EOR" or the "Company")
is pleased to report its operating and financial results for year
ended December 31, 2013 (all amounts
in US dollars).
Results for 2013, including non-IFRS measures,
compared to 2012 were:
Crude oil sales revenues for the year ended
December 31, 2013, increased
$1.4 million (or 12.7%) to
$13.1 million, compared to
$11.7 million in 2012. In addition,
net comprehensive loss for the period decreased by $3.4 million (or 61.4%) to $2.1 million in 2013, compared to a $5.5 million net loss for 2012. Loss per share
results were $0.01 and $0.03 for 2013 and 2012, respectively, for both
basic and fully diluted results. Cash used in operating activities
for the year ended December 31, 2013
was $1.7 million compared to
$5.8 million in 2012, a decrease of
$4.1 million. The significant
improvement in operating results was due to decreases in both
production lifting costs and workover expenses in 2013,
complimented with higher crude oil production and higher crude oil
prices. EBITDA for the 2013 was positive $0.8 million, compared to negative $3.5 million for 2012.).
Results of operations for the three months ended
December 31, 2013, included crude oil
revenues of $3.0 million, and a net
loss of $0.3 million, compared to
$3.0 million and $1.2 million, respectively, for the three months
ended December 31, 2012. In addition,
loss per share results (basic and fully diluted) were $0.0 and $0.1 for
the three months ended December 31,
2012 and 2013, respectively. The significant improvement in
operating results was due to decreases in both production costs
(decreased $1.0 million) and general
and administrative expenses (decreased $0.2
million), partially offset by higher workover expenses
($0.2 million) and field expenses
($0.1 million). In addition, the
Company had a positive EBITDA during the quarter compared to the
same period in 2012.
The Company announced that its independent
reserves evaluator, Cawley Gillespie
& Associates, Inc. (CGA) completed their review of the
Company's oil and gas reserves as of December 31, 2013. Estimated total proved
reserves increased to 4.5 million barrels from 3.9 million barrels
compared to the prior year and after production of 117,000 barrels
during 2013. The discounted estimated net present value, (NPV at
10%) of future cash flows attributable to the reserves was
$68.5 million at year-end 2013
compared to $54.2 million at the
prior year-end. Proved developed reserves were 1,024,000
equivalent barrels (or $30.6 million
NPV at 10%), an increase from the 898,000 equivalent barrels
($34.9 million NPV at 10%) reported
for 2012. Additional capital of approximately $6.5 million relating to large workover expenses
that will be required in the proved developed reserves category in
the Crossroads field, accounted for the reduction in the discounted
proved developed NPV at 10%. The Company commenced one of
these workovers during the first quarter of 2014 at cost of
$2.7 million.
Average prices forecast by CGA for the reserves
estimates for year-end 2013 were estimated at $94.80 per equivalent barrel compared to
$82.43 per equivalent barrel forecast
for year-end 2012. Additionally, total development costs for
all categories increased to $80.4
million from $61.4 million
reported for the prior year. The increase is attributed to
higher cost estimates and increased number of development wells in
both proved undeveloped (PUD) and proved developed non-producing
(PDNP) fields.
About Enhanced Oil Resources Inc.
Enhanced Oil Resources Inc. (TSX.V: EOR; OTCQX:
EORIF) trades in Canada on the TSX
Venture Exchange under the symbol "EOR" and is quoted in
the United States on OTCQX under
the symbol "EORIF". Enhanced Oil Resources Inc. is an early-stage
company, with a principal goal of increasing crude oil and natural
gas production through enhanced oil recovery ("EOR") and infill
drilling projects it is initiating in the Permian Basin.
Forward-Looking Statements
Certain statements contained herein are
"forward-looking statements" and "forward-looking information"
under applicable securities laws, including statements regarding
beliefs, plans, expectations or intentions regarding the future
relating to Enhanced Oil Resources Inc.'s operations, business
prospects, expansion plans and strategies.
Forward-looking information typically contains
statements with words such as "intends", "anticipate", "estimate",
"expect", "potential", "could", "plan", "continue", "scheduled" or
similar words suggesting future outcomes. Readers are
cautioned not to place undue reliance on forward-looking statements
because it is possible that expectations, predictions, forecasts,
projections and other forms of forward-looking information will not
be achieved. Forward-looking statements are based on the
opinion and estimates of management at the date the statements are
made, and are based on a number of assumptions and subject to a
variety of risks and uncertainties and other factors that could
cause actual events or results to differ materially from those
projected in the forward-looking statements. Although
Enhanced Oil Resources believes that the expectations reflected in
such forward-looking statements are reasonable, Enhanced Oil
Resources can give no assurance that such expectations will prove
to be correct, that our horizontal wells will be drilled as
expected or result in commercial production or that current oil
production will continue or increase as expected or
indicated. Further, there can be no assurance that the
Company will commence or complete the construction of a connecting
pipeline for the transmission of CO2 as contemplated, or
within the timeline required under its current CO2
contracts or be able to justify the related economics of the
project or complete it in the timeframes discussed or currently
contemplated. Readers should refer to Enhanced Oil Resources'
current filings, which are available at www.sedar.com, for a
detailed discussion of these factors, risks and
uncertainties. The forward-looking statements or information
contained in this news release are made as of the date hereof and
Enhanced Oil Resources undertakes no obligation to update publicly
or revise any forward-looking statements or information, whether as
a result of new information, future events or otherwise, unless so
required by applicable laws or regulatory policies.
Certain financial measures, namely Netback and
EBITDA, are not prescribed and do not have a standardized meaning
prescribed by IFRS and therefore may not be comparable with the
calculation of similar measures by other companies. A netback
is a per barrel (or mcf) computation determined by deducting
royalties, production expenses, transportation and selling expenses
from the oil or gas sales price to measure the average net cash
received from the barrels or mcf sold. EBITDA refers to
income (loss) before interest, income taxes, depletion,
depreciation, amortization and accretion and is often referred to
as "cash flow from operations".
ON BEHALF OF THE BOARD OF DIRECTORS
(signed)
Barry D Lasker, CEO
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION
SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX
VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE
SOURCE Enhanced Oil Resources Inc.