By OGJ editors
HOUSTON, June 21 -- Rancher Energy Corp. has selected two contractors to implement the front-end engineering and design of an enhanced oil recovery project using carbon dioxide injection in Powder River basin fields in Wyoming.
Rancher expects to recover at least 115 million bbl of oil by injecting CO2 into the reservoirs of three fields in the southwest corner of the basinSouth Glenrock B, Cole Creek South, and Big Muddyall in Wyoming's Converse County.
Pipeline engineering consultant Trigon EPC LLC and surface facilities contractor Nicholas Consulting Group Inc. will conduct the FEED studies for construction of CO2 infrastructure and a pipeline connecting Rancher's fields with a CO2 pipeline operated by Anadarko Petroleum Corp.
Anadarko, under a long-term supply agreement, will deliver 25-40 MMcfd of CO2 to Rancher for its EOR project.
Rancher Energy Pres. and Chief Executive John Works said the project is in the planning phase and the company does not have details on routing, timetable, and financial arrangements for the pipeline and surface facilities. The company also has not yet obtained financing for development of the fields and related infrastructure.
Rancher acquired the three fields earlier this year. The company has a 93.73% interest in South Glenrock B field and a 100% interest in the other two.
The 7,070 acre South Glenrock field, discovered in 1950 by Conoco Inc., is organized into three units: A, B, and C. It has estimated remaining recoverable reserves of 40 million bbl. Field production from the Dakota and Muddy sandstones have been maintained by secondary recovery initiated in 1961. Current gross production from Unit B is 210 b/d of primarily 35° oil.
Cole Creek South field, covering 2,080 acres, was discovered in 1948 by Phillips Petroleum Co. It has remaining oil reserves of 10.8 million bbl. The field has been water-flooded since the 1960s and currently produces 80 b/d of 35° oil.
Covering 8,500 acres, Big Muddy field is producing about 60 bo/d. Since its discovery in 1916 by Conoco, it has produced about 52 million bbl of oil from several producing zones, of which the Wall Creek formation has been the most prolific, producing 32 million bbl at a depth of 3,500 ft. Geologically, the field is analogous to nearby Salt Creek field, in which Anadarko is conducting a successful CO2 injection program.