ENHANCED OIL RESOURCES CLOSES $301,715 THIRD TRANCHE OF NON-BROKERED PRIVATE
PLACEMENT

/THIS NEWS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM./

HOUSTON, Oct. 5 /CNW/ - Enhanced Oil Resources Inc. (TSX-V: EOR) today announced that the third tranche of the non-brokered private placement of Units announced on August 12th, 2010 has closed. The Company has received proceeds of $301,715 pursuant to the issuance of 1,508,575 Units and has paid Finders Fees totaling $13,600 in connection with this third tranche closing.

Each Unit is comprised of 1 common share and one-half of one transferable common share purchase warrant, each whole warrant entitling the holder to purchase an additional common share at $0.25 per share for a period of 24 months. All securities issued in connection with the third tranche closing are subject to a hold period expiring February 5th, 2011.

The first tranche (4,720,000 Units) of the Offering closed on September 28th, 2010. All securities issued in connection with the first tranche closing are subject to a hold period expiring January 29th, 2011.

The second tranche (3,306,425 Units) of the Offering closed on September 30th, 2010. All securities issued in connection with the second tranche closing are subject to a hold period expiring January 31st, 2011.

The third tranche (1,508,575 Units) of the Offering closed on October 4th, 2010. All securities issued in connection with the third tranche closing are subject to a hold period expiring February 5th, 2011.

Proceeds from this private placement, which is subject to final regulatory approval, are intended to be used for continued development operations in the Company's oil fields in New Mexico and for general working capital.

    
    About Enhanced Oil Resources Inc.
    ---------------------------------
    

Enhanced Oil Resources Inc. is an early-stage company, with two principal business segments of

    
    (i)  Crude oil and natural gas production through enhanced oil recovery
         ("EOR") projects it is initiating in the Permian Basin on oil fields
         acquired by the Company in 2007 and 2008 for that purpose.
    (ii) Helium and CO(2) resource exploration and production through
         property interests it controls in approximately 235,000 gross acres
         of land within the St Johns Helium/CO(2) field in Arizona and New
         Mexico, and where the Company is developing what is thought to be
         the largest undeveloped helium and carbon dioxide field in North
         America.

    Forward-Looking Statement
    -------------------------
    

Certain statements contained herein are forward-looking statements, including statements relating to Enhanced Oil Resources' operations; business prospects, expansion plans and strategies. Forward-looking information typically contains statements with words such as "intends," "anticipate," "estimate," "expect," "potential," "could," "plan" or similar words suggesting future outcomes. Readers are cautioned not to place undue reliance on forward-looking information because it is possible that expectations, predictions, forecasts, projections and other forms of forward-looking information will not be achieved by Enhanced Oil Resources. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties. A change in any one of these factors could cause actual events or results to differ materially from those projected in the forward-looking information. Although Enhanced Oil Resources believes that the expectations reflected in such forward-looking statements are reasonable, Enhanced Oil Resources can give no assurance that such expectations will prove to be correct. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by Enhanced Oil Resources and described in the forward-looking statements or information. The forward-looking statements are based on a number of assumptions which may prove to be incorrect. Readers should be aware that the list of factors, risks and uncertainties set forth above are not exhaustive. Readers should refer to Enhanced Oil Resources' current filings, which are available at www.sedar.com, for a detailed discussion of these factors, risks and uncertainties. The forward-looking statements or information contained in this news release are made as of the date hereof and Enhanced Oil Resources undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable laws or regulatory policies.

ON BEHALF OF THE BOARD OF DIRECTORS

(signed)

Barry D Lasker, CEO

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

%SEDAR: 00004538E

For further information: visit our Website at www.enhancedoilres.com. or please call Don Currie on 1-888-990-3551