Enhanced Oil Resources has declared its audited financial results for the year ending December 31, 2008.

Oil and gas revenue in 2008 increased $3.1 million or 260% to $4.3 million as a result of increased production and an increase in the average price of oil and gas sales compared to 2007. During 2008, the Company acquired the Crossroads Devonian Unit and post acquisition has increased daily production from 38 barrels of oil per day (bopd) to a current production rate of 112 bopd. Gross oil sales increased to 53,700 barrels of oil equivalents ("boe's") or 42,700 net boe's compared to 17,900 net boe's in 2007, an increase of 140% over net sales in 2007. For 2008 the Company averaged 147 boe's per day while current daily production is averaging approximately 200 boe's per day. The average price received for sales was US$93.24 per boe compared to US$66.23 per boe received in 2007. Lease operating expenses related to oil and gas properties increased $1.4 million related to additional production.

Improved operating efficiencies and well cycling at the Chaveroo oil field have resulted in an overall reduction of operating costs per boe to $27.11 in the 4th quarter of 2008 as compared to $53.93 in the first three quarters of the year. Activity to further reduce operating costs is ongoing.

The Company incurred a net loss and comprehensive loss of $10.1 million for the year ended December 31, 2008 compared to a net loss of $10.0 million compared to the same period in 2007. The Company reported loss per share of $.09 for 2008 compared to $.13 per share reported for 2007 on average outstanding shares of 107,487,030 shares in 2008 compared to 78,602,164 average outstanding shares reported for 2007. Operating expense and general and administrative expense increased $1.5 million and $1.9 million, respectively, in 2008 as a result of increased production and increased personnel related to the Company's two business segments. Non-cash expense decreases aggregating of $1.7 million compared to 2007 were principally comprised of a foreign currency translation gain in 2008 of $1.4 million and a decrease in stock-based compensation expense of $0.7 million. Depreciation, depletion and accretion expenses increased $0.9 million in 2008.

Tags: Enhanced Oil Resources