/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
HOUSTON, TX, May 6, 2016 /CNW/ - Enhanced Oil Resources Inc.
(TSX-V: EOR; OTCQX: EORIF) (the "Company") announces that
that it will conduct a non-brokered private placement (the
"Private Placement") of approximately 65,000,000 common
shares (the "Shares") of the Company at a price of CAD
$0.05 per share to raise gross
proceeds of USD$2,500,000. The number
of Shares to be issued will be determined by dividing the gross
proceeds received by the US Dollar equivalent of CAD $0.05 on the Private Placement closing date.
The proceeds from the Private Placement will be used for
operating expenditures and for general working capital
purposes.
It is anticipated that insiders of the Company and their joint
actors may subscribe for up to 20% of the Shares pursuant to the
Private Placement. The participation of each insider will be
subject to the approval of directors of the Company who are
independent of such insider. Any such participation would be
considered to be a "related party transaction" as defined under
Multilateral Instrument 61-101 ("MI 61-101"). As the
distribution of the securities to the insiders is for cash with a
fair market value of not more than $2,500,000, the Company anticipates that the sale
of securities to insiders pursuant to the Private Placement will be
exempt from the valuation and minority shareholder approval
requirements of MI 61-101. No new insiders are anticipated to
be created, nor will there be any change of control as a result of
the Private Placement.
All securities issued in connection with the Private Placement
will be subject to a minimum four-month hold period. The
private placement is subject to all required approvals, including
the approval of the TSX Venture Exchange.
About Enhanced Oil Resources Inc.
Enhanced Oil Resources Inc. owns and operates two large historic
oil fields in New Mexico, the
Milnesand & Chavaroo oil fields. Recorded Production of these
two fields is in excess of 37 million barrels, representing
approximately 10% of the oil in place. The Company plans to unlock
the value in these resource-rich fields by increasing the
efficiency of its operations, and by applying new and proven
unconventional production technologies.
ON BEHALF OF THE BOARD OF DIRECTORS
Andrew
Hromyk
President and Chief Executive
Officer
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE
EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF
THIS RELEASE
Cautionary Statement Regarding Forward-Looking
Information
Except for statements of historical fact, this news release
contains certain "forward-looking information" within the meaning
of applicable securities law. Forward-looking information is
frequently characterized by words such as "plan", "expect",
"project", "intend", "believe", "anticipate", "estimate", "will",
"could" and other similar words, or statements that certain events
or conditions "may" or "could" occur. Such forward-looking
information is based on a number of assumptions and subject to a
variety of risks and uncertainties, including but not limited to
those discussed in the sections entitled "Forward-Looking
Statements" in the interim and annual Management's Discussion and
Analysis which are available at www.sedar.com. While our management
believes that the assumptions made are reasonable, should one or
more of the risks, uncertainties or other factors materialize, or
should underlying assumptions prove incorrect, actual results may
vary materially from those described in forward-looking
information. Forward-looking information herein, and all subsequent
written and oral forward-looking information are based on estimates
and opinions of management on the dates they are made and are
expressly qualified in their entirety by this cautionary statement.
Except as required by law, the Company assumes no obligation to
update forward-looking information should circumstances or
management's estimates or opinions change.
This news release does not constitute an offer to sell or a
solicitation of an offer to sell any of the securities in the
United States. The securities referred to herein have not
been and will not be registered under the United States Securities
Act of 1933, as amended or any state securities laws and may not be
offered or sold within the United
States or to U.S. Persons unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption
from such registration is available.
SOURCE Enhanced Oil Resources Inc.