As the United States economy continues to grow, the Country’s dependence on foreign oil will also continue to grow. The Department of Energy (DOE) has estimated that over the next 25 years oil imports will double and unless additional domestic supplies are exploited a reliable supply of imported oil cannot be guaranteed. The nation’s dependence on imported oil, as a result, could soar to 70% by 2025. In order to reduce this reliance on foreign oil, new reserves of domestic crude oil must be found. As technology has increased, the leaders in the oil industry have moved towards deep water reserves, oil sand deposits and CO2 injection to enhance oil recovery (CO2-EOR) in existing fields.

In 2006, the Department of Energy published a series of reports that examined the stranded oil that remained within existing fields in the US and has concluded that this resource is estimated to contain 377 billion barrels of oil that could be the target for Enhanced Oil Recovery (EOR) applications. Furthermore, the report stated that “CO2 injection is the future of enhanced oil recovery (CO2-EOR) increasing current US domestic oil reserves by a factor of 10” and that “CO2 flooding is the fastest growing method of enhanced oil recovery in the US.” CO2-EOR projects are proliferating in the United States as oil prices have increased and operating costs of CO2 floods have dropped sharply in recent years. Given the immense volumes of bypassed oil in America’s thousands of mature or declining oilfields, and expectations for persistently high oil prices, expanding CO2 EOR efforts has the potential to make a significant difference to the oil reserve base of the United States.

The DOE has determined that state-of-the-art enhanced oil recovery with carbon dioxide (CO2) could add 89 billion barrels to the recoverable oil resources of the United States. Current U.S. proved reserves are 21.9 billion barrels. Beginning efforts to develop the 89-billion-barrel addition to resources would depend on the availability of commercial CO2 in large volumes. If this oil could be added to the category of proven reserves, the U.S. would have the fifth largest oil reserves in the world behind Iraq, which has 115 billion barrels and Saudi Arabia with 261 billion barrels.

Enhanced Oil Resources, Inc. (“the Company”) is in the enviable position of owning a dominant position in the largest undeveloped natural Helium/CO2 resource in North America. Discovered in 1994, the St. Johns Field is estimated by third party engineers to contain up to 15 trillion cubic feet of CO2 in place with potential recoverable reserves of up to 5 trillion cubic feet. In addition, the field is estimated to contain up to 30 billion cubic feet of helium. Helium, a rare and inert gas, currently sells on market at approximately $90.00 per thousand cubic feet. The Company has previously signed a take-or-pay contract with a major industrial gas company for all the helium the project can deliver.

The Company intends to maximize the value of the St Johns Helium/CO2 resource through field development, pipeline construction into the Permian Basin of New Mexico and the purchase of oil fields where CO2 injection has the potential to add substantially to remaining reserves.

The Company intends to grow reserves and value through the acquisitions of mature oil fields and initiation of CO2 flooding within these fields. The Company plans to deliver its own CO2 supplies via pipeline to the western edge of the Permian Basin where significant EOR potential exists. Thus, the Company will be able to control the direction and pace of development through the controlling ownership of the CO2 supply and pipeline infrastructure. The area of focus for the Company is the western edge of the Permian Basin where currently there is no ample supply of CO2 and several hundreds of millions of barrels of EOR opportunities. By capturing just 100 million barrels of EOR oil out of the 2.8 billion barrels identified by the DOE, the Company has the potential to grow from a market cap of just $100mm to over $1B. The Company has already acquired 56 million barrels of EOR oil through its acquisition of two large mature oil fields in the Permian Basin. By executing the business plan the Company has the potential to offer substantial share price appreciation for its shareholders.