Company History

Enhanced Oil Resources Inc. (EOR Inc., formally Ridgeway Petroleum) has been exploring for oil and gas in North America since 1980. In 1994, a wildcat well in Apache County, Arizona encountered a significant gas accumulation that would change the course of EOR Inc.'s history and put it on the road to potentially becoming one of North America's largest producers of carbon dioxide (CO2) and helium. The 2,400 foot discovery well on the St. Johns Anticline flowed over 800,000 cubic feet per day (MCF/d) from an unstimulated 400 foot interval. A follow-up well four miles to the south flowed over 650 MCF/d from an unstimulated 150 foot interval. In addition to 94 per cent CO2 content, both wells produced approximately 0.6 per cent helium, a premium-priced commodity. Since the initial discovery well, EOR Inc. has delineated the size of the resource by drilling a further 26 exploration wells. In 1999, a resource report was prepared by Cobb Engineering, Dallas, Texas. who has concluded that the St. Johns Anticline contains an in-place resource of approximately 15 trillion cubic feet of CO2 with potential reserves of approximately 5 trillion cubic feet of CO2 and 30 billion cubic feet of helium. Based on the results of the Cobb report it is anticipated that a daily production rate of 500 million cubic feet could be achieved and at these rates the Field could produce for over 25 years.

In 1996, EOR Inc. expanded its land holdings from 22,000 acres to 176,000 acres and by the Fall of 1997, the Company had leased or made application to lease more than 400,000 gross acres, including 125,000 gross acres in New Mexico. As the Field was delineated additional acreage was leased and acreage was released. Today, the Company has leased approximately 200,000 acres and has applied for an additional 60,000 acres that had previously expired. On average, EOR Inc. holds an approximate 85 per cent net revenue interest in this acreage.

In the first quarter of 2002 the Company signed an agreement with FlowCO2 of Midland, Texas to supply up to 1.8 million cubic feet per day to FlowCO2’s dry ice plant to be located at the Field. Production from the 10-22 well (Figure 2) located towards the crest of the structure began in July 2003 and produced nearly continuously for 12 months before Flowco2 shut the plant in. By producing into the Flowco plant for this period the Company was, for the first time, able to view long term production characteristics of the reservoir. Of particular interest was the lack of production decline seen throughout the production period. Daily production was consistently in the region of 1.5 million to 1.8 million cubic feet per day with increasing pressure over time. These results have provided an excellent data set from which to determine, potentially, the long term production profile for the field. Additional wells drilled during the upcoming drilling program will be flow tested in order to improve our understanding of the spatial distribution of the production characteristics of this world class resource.

In the first quarter of 2003, the Company signed a fifteen year take or pay contract with Air Liquide for the purchase of EOR Inc.'s liquid helium once in production.

In February 2005, the Board of Directors of the Company announced the appointment of Barry D. Lasker as Director, President and CEO. Mr. Lasker is located in Houston, Texas where a new head office has been established. Mr. Lasker replaced Walter B. Ruck, who announced his intended resignation as President in December 2004 pending appointment of his successor. Mr. Ruck was the founding shareholder of the Company in 1980 and remained as a Director and Chairman of the Board until his sudden passing in July 2005.

In October 2005, the Company announced that it had acquired additional leases totaling approximately 17,200 acres within the central field area of the St. Johns Helium and CO2 Project. This acreage is strategically located along the crestal portion of the field, and, based on offsetting well control, is expected to contain thick sequences of gas bearing reservoirs. The addition of this acreage solidifies the Company's land position and is expected to facilitate future appraisal activity and Unit agreement negotiations.

Today, the Company is continuing to execute on it’s new business plan and continues to seek out opportunities to add value for it’s Shareholders.