HOUSTON, Jan. 20, 2015 /CNW/ - Enhanced Oil Resources Inc.
(TSX-V: EOR; OTCQX: EORIF) (the "Company") announces that it is
implementing a consolidation of its common shares on the basis of
one post-consolidated share for every ten pre-consolidated
shares.
The Company believes that reducing the number of issued and
outstanding common shares will result in greater investor interest
by allowing institutional investors that would, under their
investing guidelines, otherwise be precluded from investing at the
previous pre-consolidation common share price to invest in the
Company, and reduce the volatility in the common share price on a
percentage basis. The Company also believes that trading costs on a
fixed-dollar amount at a higher price per common share may be
lowered for investors relative to the lower price
pre-consolidation. The Company expects that the greater interest
and reduced transaction costs should ultimately increase and
improve the liquidity of the Company's common shares.
Effective at the opening of the market on Wednesday, January 21, 2015 the common shares of
the Company will commence trading on the TSX Venture Exchange on a
consolidated basis.
The new CUSIP number will be 29333E205 and the new ISIN will be
CA29333E2050. The Company's name and stock symbol will remain
unchanged following the consolidation.
The Company currently has 160,186,319 issued and outstanding
common shares and is anticipated to have 16,018,631 common shares
outstanding following the consolidation. The Company's
outstanding stock options will also be adjusted on the same basis
(one for ten) as the common shares, with proportionate adjustments
being made to exercise prices.
Letters of transmittal with respect to the consolidation will be
mailed to all registered shareholders of the Company as at
January 20, 2015. All registered
shareholders who submit a duly completed letter of transmittal,
along with their respective share certificates representing the
pre-consolidated shares, to the Company's transfer agent,
Computershare Investor Services Inc., will receive a share
certificate representing the post-consolidated shares. Additional
copies of the letter of transmittal can be obtained through
Computershare. No action is required by non-registered shareholders
who hold securities of the Company through an intermediary to
effect consolidation of their shares.
No fractional shares will be issued. Where the exchange results
in a fractional share, the number of post-consolidation common
shares will be rounded down to the nearest whole common share.
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 CEO
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.
SOURCE Enhanced Oil Resources Inc.