Enhanced Oil has $25MM cash in the bank. They begin a 3 well drilling program on Monday and trading volume is picking up. Market Cap of $19.2MM is below cash on hand. The company holdings include 26,000 acres of oilfields in the Permian Basin are valued at $55MM.
This is a 3 well 1400'-2500' lateral drill program. Expected results are 30-100 bopd per well. These $1MM wells have a 1 year payback. They are low risk infill 20 acre downspacing wells. The company has 270 infill drilling sites, with the potential of 8100 bopd to 27,000 bopd. The company is prepping the field for CO2 flooding in 2015. The contract with Kinder Morgan will deliver pressuerized CO2 through a planned 41 mile pipeline.