/NOT FOR DISTRIBUTION TO UNITED
STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/
HOUSTON, May 16, 2016 /CNW/ - Enhanced Oil Resources
Inc. (TSX-V: EOR; OTCQX: EORIF) (the "Company") announces
that it has closed a non-brokered private placement (the
"Private Placement") of 64,700,000 common shares (the
"Shares") of the Company at a price of CAD $0.05 per share to raise gross proceeds of
US$2,500,000. The Shares are
subject to a trading hold period expiring on September 14, 2016.
The proceeds from the Private Placement will be used for
operating expenditures and for general working capital
purposes.
Pursuant to the Private Placement, insiders of the Company and
their joint actors subscribed for an aggregate of 20,704,000 Shares
representing approximately 25.7% of the outstanding Shares on
closing. The participation of each insider is considered to be a
"related party transaction" as defined under Multilateral
Instrument 61-101 Protection of Minority Security Holders in
Special Transactions ("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 sale of securities to insiders
pursuant to the Private Placement is exempt from the valuation and
minority shareholder approval requirements of MI 61-101.
The Company did not file a material change report more than 21
days before the closing of the Private Placement, as the details of
the aforementioned insiders' participation were not settled until
shortly prior to the closing of the Private Placement, and the
Company wished to close on an expedited basis for sound business
reasons.
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.