HOUSTON, Aug. 5, 2008 (Canada NewsWire via COMTEX) —-Enhanced Oil Resources, Inc. (TSX-V: EOR) today announced that it has closed on a third and final tranche of financing related to the brokered private placement announced on June 23rd, 2008. The third tranche contained 1,290,000 Units for total proceeds of $1,599,600 (CDN: 2.16, 0.14, 6.93%) and these proceeds net of costs have been delivered to the Company.

Previously the Company had announced it engaged Union Securities Ltd. (the “Agent”) as agent in connection with a private placement of up to $7,500,000 (CDN) comprised of Units (6,048,387 Units) at $1.24. Each Unit is comprised of 1 common share and one half of one non-transferable common share purchase warrant, each whole warrant entitling the holder to purchase an additional common share at $1.80 per share for a period of 24 months from closing.

The Agent with regard to its services is entitled to receive a cash commission equal to 7% of the aggregate gross proceeds of the Units sold pursuant to the Offering and the Over-Allotment Option including in respect of any Units purchased by the Agent as principal and Agent Compensation Options equal to 7% of the aggregate number of Units sold pursuant to the Offering and the Over-Allotment Option where each Agent’s Compensation Option entitles the Agent to purchase one Unit of the Company at $1.24 per Unit for a period of 24 months from the Applicable Closing Date.

The first tranche (2,438,500 Units) of the Offering closed in Toronto on June 27, 2008. All securities issued in connection with the first tranche closing are subject to a hold period expiring October 28th, 2008.

The second tranche (1,650,000 Units) of the Offering closed in Toronto on July 16, 2008. All securities issued in connection with the second tranche closing are subject to a hold period expiring November 17th, 2008.

The third tranche (1,290,000 Units) of the Offering closed in Toronto on July 31, 2008. All securities issued in connection with the third tranche closing are subject to a hold period expiring December 1st, 2008.

Leave a Reply

Your email address will not be published. Required fields are marked *