Elk Petroleum (ASX: ELK) and Denbury Resources (NYSE: DNR) expect to bring the fourth carbon dioxide injection well at their Grieve Enhanced Oil Recovery Project on line this week as more CO2 becomes available.
Three of the four CO2 injection wells are already injecting a total of slightly less than 30 million cubic feet of CO2 per day.
The injection of water to expedite the repressuring of the Grieve Muddy reservoir is expected to commence in the near future.
Elk also noted the Wyoming Oil and Gas Conservation Commission has posted the 2013 Plan of Development for the Grieve field on its website.
This comes after the plan was accepted by the Bureau of Land Management.
The plan confirms that an extensive 3D seismic survey is planned to be shot over the field in order to gain a better understanding of the field for reservoir management purposes.
Elk and Denbury will also track the movement of carbon dioxide sweep efficiency through the oil reservoir by using successive 3D surveys.
It also provides details of the CO2 injection wells and water injection wells that are to be employed to re-pressure the Muddy reservoir in 2013.
It also indicates the schedule for the construction of the CO2 Recycling Central Facilities.
CO2 injection will act to repressure the Grieve oil reservoir to a level above the minimum needed to turn the remaining oil mobile.
This will in turn allow the joint venture to produce the proved and probable reserves of 18.6 million barrels of oil from the production wells. First oil production is currently expected to occur in 2014.
Water injection is expected to accelerate this process.
Elk has A$3 million in cash though it is fully funded through development of the Grieve project.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.