Enhanced Oil Resources Inc. has entered into a Letter of Intent with Schlumberger Technology Corporation (Schlumberger) whereby Schlumberger, at its own cost, will conduct an in-depth technical evaluation of the potential redevelopment of the Milnesand and Chaveroo oil fields, located in Chaves and Roosevelt Counties, New Mexico. Schlumberger will utilize in-house experts in primary, secondary and tertiary recovery with the ultimate goal of deciding the best way forward, if appropriate, to recover additional oil reserves contained within these fields.

The Company has agreed to stand still on the redevelopment of the fields for a period of up to six months while the Schlumberger-funded study is underway. Based on the results of the study, Schlumberger will decide whether to assist EORI in redevelopment of the Milnesand and Chaveroo fields under a comprehensive services agreement to be negotiated by both parties.

Tags: Enhanced Oil Resources, Schlumberger