eor may10 oilfields presentation

ENHANCED OIL RESOURCES Inc.

May 2010

Barry Lasker, CEO

Forward-Looking Statements

Certain statements contained herein are forward-looking statements, including statements relating to Enhanced Oil

Resources’ operations; business prospects, expansion plans and strategies. Forward-looking information typically

contains statements with words such as “intends,” “anticipate,” “estimate,” “expect,” “potential,” “could,” “plan” or

similar words suggesting future outcomes. Readers are cautioned not to place undue reliance on forward-looking

information because it is possible that expectations, predictions, forecasts, projections and other forms of forward-looking

information will not be achieved by Enhanced Oil Resources. By its nature, forward-looking information involves

numerous assumptions, inherent risks and uncertainties. A change in any one of these factors could cause actual events or

results to differ materially from those projected in the forward-looking information. 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. Forward-looking statements are based on current

expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to

differ materially from those anticipated by Enhanced Oil Resources and described in the forward-looking statements or

information. The forward-looking statements are based on a number of assumptions which may prove to be incorrect.

Readers should be aware that the list of factors, risks and uncertainties set forth above are not exhaustive. 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

TSX-V:EOR

www.enhancedoilres.com

3

Enhanced Oil Resources Inc. Stock Profile

• Market capitalization: $55MM*

• 149MM shares outstanding, 190MM shares fully diluted

• Trades on TSX-Venture Exchange under symbol EOR

• Average daily trading volume (3 Mos.): 150,000

* As of 05/03/10

TSX-V:EOR


4

Company Vision

To become a leading energy producer in the Permian Basin

through continued development of our resources of Oil,

Helium and CO2.

TSX-V:EOR


5

Corporate Profile

• Oil production growth via infill drilling, fracture stimulation, water flooding & CO2-enhanced oil recovery

– Average Q1 2010 production of 520 bopd

– CO2 Pilot flood at Company owned Milnesand San Andres Unit completed

– Approximately 28,000+ total gross acres with 250+ potential 20 acre locations

– Approximately 50 near term fracture stimulations of existing San Andres wells

– Potential reserves at 3 Company owned oil fields through WAG CO2 flooding is estimated at 50 to 60 mm barrels recoverable*

• Owner/operator of St. Johns Helium/CO2 field in AZ and NM, the largest undeveloped field of Helium and CO2 in North America

– In-place He/CO2 resource of 15 Tcf**. Proved + Probable reserves of 2.3 tcf

– Potential recoverable helium resource of 30 Bcf**

– Enough 2P reserves for 200mmcfpd pipeline for 30 years

• Cash on hand approximately $1.0MM. Debt Free

**Source: W.M. Cobb & Associates (2005,2008)

*Source: Advanced Resources Int. (2007,2008)

Operational Focus: Permian Basin

McElmo

Dome

Sheep

Mountain

Bravo

Dome

St. Johns

Jackson

DomePermian

Basin

Sources: DOE [2006] and industry sources

EOR Inc. Oilfields

EOR Inc. proposed pipeline

Denver

City

EOR St Johns Helium/CO2 Field

• 300 miles to EOR operated oil fields

• Construction to begin late 2014

• Completion expected in 2015

• Initial Target Rate: 200 MMcfpd +/-

• Potential 3rd party sales

• Helium Sales Agreement with Air Liquide

6 Tcf potential

200 MMcfpd (Phase 2)

EOR Permian Basin Oilfields• Current owner and Operator of 3 oilfields

• Currently producing 520 bopd Q1 2010

• CO2 pilot project at Milnesand resulted in 4mm

barrels (Proved + Probable) in Phase 1 project

• Potential reserves at Milnesand 14 mm barrels

• Potential reserves at Chaveroo 34 mm barrels

• Potential reserves at Crossroads 13 mm barrels

• CO2 Agreement with Kinder Morgan in place

• Delivery no later than 09/2012

6

TSX-V:EOR


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2009 Financial & Operational Results

• Gross Revenues of $5.7 million, 33% increase from 2008

• Production of 264 BOPD, Entered 2010 at 520 BOPD (Q1/10 average)

• 66% operating margin per BOE

• Proved Developed reserves of 1 million BOE

• PV-10 of $30 million

• Proved + Probable reserves of 4.5 million BOE

• PV-10 of $61 million

• St Johns Arizona He/CO2 resource of 12 Tcf CO2 in place (50% -70% rec)

• St Johns Helium resource potential (phase 1) 8 Bcf

• St Johns Arizona Unit Agreement signed October 2009 (5 Years)

TSX-V:EOR


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Reserve Growth through Technology Improvements

Current asset base of 3 oilfields has the potential to increase oil reserves from ~ 1mm barrels

(proved developed) oil recoverable to in excess of 50 mm barrels oil recoverable through

infill drilling and secondary/tertiary (CO2-EOR) recovery. Current production of 520 bopd

can be increased to over 8,000 bopd. Re-development of these assets to be implemented in

two phases.

Phase 1

Implement infill drilling and fracture stimulation of the San Andres reservoir at Milnesand

and Chaveroo fields followed by CO2 flooding via existing 5 Year CO2 contract.

Phase 2

Implementation of full field CO2 flooding at these and other fields from the Company’s St

Johns Helium and CO2 field in Arizona and New Mexico or through alternate gas contract.

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Company Strategy

Build reserves and cash flow through Exploitation of existing assets,

Acquisition of new assets and Implementation of CO2 - Enhanced Oil Recovery.

Implement

• St Johns Helium/CO2 field

• 100 mmcfpd raw feedstock

liquid He plant (0.72% He)

• 200 mmcfpd Permian Basin

CO2 pipeline

• EOR - CO2 flooding

Acquire

• Maintain Oil Focus

• Oilfields with a strategic fit

to existing assets

• Develop a 2nd focal area

• Upside through reactivations

and facility improvements

• Miscible CO2 flood potential

Exploit

• 28,000 Net acres in

Permian Basin

• Recompletions

• Reactivations

• Frac existing wells

• Down spacing to 20 ac

• Up hole (new) zones

TSX-V:EOR


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BOPD Production Growth

0

200

400

600

800

2006 2007 2008 2009 2010

BO

PD

Increase in Proved Reserves

0

1,000,000

2,000,000

3,000,000

2006 2007 2008 2009

Barrels

Oil

Increase in Proved Developed

Reserves

0

500,000

1,000,000

1,500,000

2006 2007 2008 2009

Recent Growth –Track RecordBUILD RESERVES and cash flow through Exploitation of existing assets,

Acquisition of new assets and Implementation of EOR-CO2 recovery.

Growth in 2P Reserves

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

2006 2007 2008 2009

2010 Goal* *

*2010 to date*

TSX-V:EOR


11

Reduction in Lease Operating

Costs

0

50

100

150

2008

Q1

2008

Q3

2009

Q1

2009

Q3

2010

Q1

$/b

oe

Cash Flow From Operations

-1500000

-1000000

-500000

0

500000

1000000

2009 Q1 2009 Q2 2009 Q3 2009 Q4 2010 Q1

Recent Growth –Track RecordBuild reserves and CASH FLOW through Exploitation of existing assets,

Acquisition of new assets and Implementation of EOR-CO2 recovery.

TSX-V:EOR


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San Andres: 20 Acre Infill Program Economics

EOR Inc. has the potential for approximately 250 20 acre infill wells

• Capex per well - $500,000

• Initial Production – 30 to 40 BOPD

• Cum Oil per well - 38,000 bo

• NPV(10%) - $670,000 per well

• IRR - 63%

• 5 Year inventory of drilling locations at 20 acre spacing

• Peak production potential of 6,500 BOPD prior to CO2 injection

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70 Milnesand Infill Wells (20 acres)

20 Acre Infill wells

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180 Chaveroo Infill Wells (20 acres)

20 Acre Infill wells

Milnesand: 20 Acre Infill Development Plan

Number of Wells Drilled Per Quarter

0

2

4

6

8

10

12

14

Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012

8 Quarters of Infill Drilling Production

0

500

1000

1500

2000

2500

3000

Q4

2010

Q1

2011

Q2

2011

Q3

2011

Q4

2011

Q1

2012

Q2

2012

Q3

2012

BO

PD

15

Quarterly Cash Flow Before Drilling

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

Q4

2010

Q1

2011

Q2

2011

Q3

2011

Q4

2011

Q1

2012

Q2

2012

Q3

2012

$ P

er

Qu

art

er

(x1,0

00)

Quarterly Cash Flow Available After Drilling

-$1,000

-$500

$0

$500

$1,000

$1,500

$2,000

$2,500

Q4

2010

Q1

2011

Q2

2011

Q3

2011

Q4

2011

Q1

2012

Q2

2012

Q3

2012

$ P

er

Qu

art

er

(x 1

,000)

TSX-V:EOR


16

Milnesand San Andres Pilot CO2 Flood Cawley Gillespie Reserves Report Nov. 2009

• CO2 injection initiated September, 2008. Ceased injection August, 2009

• 5 spot pattern. 1 injector; 4 producers

• Peak output per pattern is expected to be 65-90 bopd (2 years)

• Over 100 patterns in Milnesand available under full flood development

• ARI in report Oct 07 estimated 17mm barrels recoverable under CO2

• ARI in report Feb 09 “Results to date match model very well”

• Cawley Gillespie Engineers - 2.2 mm barrels proved; 5 mm barrels probable

based on results of pilot to date for Phase 1 3,000 acre flood

• Phase 1 Peak production 3,500 BOPD in 4 years

• Flood response mirrors Denver City early time results; 14 mm barrels 3P for

6,000 acre field area

• Milnesand is adjacent to Chaveroo San Andres field (EOR 95% owned)

• ARI Chaveroo report Jan 07 estimated 34mm barrels recoverable under CO2

TSX-V:EOR


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Enhanced Oil Resources Plan for 2010

• Exit 2010 with a rate of 1,000 bopd

• 5 well 20 acre infill drilling at Milnesand

• 5 fracture stimulations at Milnesand

• 5 well drilling commitment at St Johns He/CO2 field

• Start ROW permitting of 25 mile 6 inch CO2 pipeline to Company owned oilfields

• Start permitting for 100 mmcfpd raw feed gas liquid He plant at St Johns

TSX-V:EOR


18

Enhanced Oil Resources Offers

• Ground floor investment opportunity in large scale infill development and tertiary oil recovery projects with proven technology

• Multi Year inventory of 250 20 acre infill drilling opportunities

• Oil production upside through CO2-EOR from captured fields

• Tremendous leverage into additional CO2 –EOR opportunities

• Ground floor investment opportunity in largest undeveloped helium and CO2 field in North America

• Minimal Exploration Risk

TSX-V:EOR


19

Management

• Barry Lasker – President, CEO & Director

– 28 years oil & gas experience: geology/geophysics

– Former CEO Kestrel Energy, GHP Exploration, former asset manager BHP Petroleum, Esso Australia

• Kyle Willis – CFO

– 30+ years financial oil & gas experience

– Former CFO Harken USA, former CFO TransAtlantic Petroleum, DrillTube Int’l, Buttes Resources, Inc.

• Cynthia Newman – CAO

– 20+ years financial experience

– Former Controller Gulfsands Petroleum Plc., former Manager Financial Accounting, Dresser Inc.

• Jamie Hogue – Vice President Government Affairs

– Former Deputy Land Commissioner Arizona State Land Dept.

• Don Currie – Director Investor Relations

– 14 years with the Company

TSX-V:EOR


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Directors

• Rod Eson – Chairman

– Co-Founder Venoco

– Founder & CEO Foothill Energy

• Tom Milne

– International finance

• Ed Parker

– 35+ years oil & gas experience

– El Paso, Burlington Northern, Burlington Resources

• John Dorrier

– Former CEO Gulfsands Petroleum Plc.

– Amoco, BHP Petroleum, Seven Seas Petroleum

• Barry Lasker – President and CEO

Corporate Information

Corporate Headquarters

Enhanced Oil Resources Inc.

One Riverway, Suite 610

Houston, TX 77056

Ph: 832.485.8500

Fx: 832.485.8506


Contact Us

Barry Lasker – President and CEO

[email protected]

Kyle Willis – CFO

[email protected]

Cynthia Newman – CAO

[email protected]

Don Currie – Director of IR

[email protected]

21

http://www.enhancedoilres.com/

mailto:[email protected]




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