Encore secures carbon dioxide supply for Bell Creek flood

By OGJ editors
HOUSTON, July 29
-- Encore Acquisition Co. said it will purchase carbon dioxide for its Bell Creek tertiary oil recovery project in southeastern Montana from the Lost Cabin gas plant in Fremont County, Wyo.

Under the terms of the agreement, Encore will purchase all volumes available from the plant, initially estimated at 50 MMcfd. Initial term of the contract is 15 years.

The company plans to build compression facilities adjacent to the plant and construct a 206-mile pipeline to transport compressed CO2 to Bell Creek where it will upgrade its current waterflood into a miscible CO2 flood.

Bell Creek contained an estimated 350 million bbl of original oil in place with about 221 million bbl remaining, according to the company.

The reservoir at Bell Creek is at 4,500 ft, which allows for CO2 miscibility, Encore noted. In addition, the company expects a rapid production response because of the reservoir's 900 md permeability and average 24% porosity. Encore expects to begin seeing a production response within 6 months to 1 year after first injection.

Encore estimates that the CO2 project will recover an incremental 30.1 million bbl of oil, and at the current strip price generate more than $800 million of net cash flow for the company during the project's 20-25 year life.

Utilizing 100% of the available CO2, Encore expects the production response will exceed 6,500 bo/d by 2015 and to stay relatively flat for 10 years before beginning to decline in about 2025. It expects a peak response of about 7,000 bo/d in this case.

Utilizing 70% of the available CO2, its estimate is that the production response will exceed 5,000 bo/d by 2015 and to stay relatively flat for 12 years before beginning to decline in about 2027. Peak response will be about 5,500 bo/d, it said.

Under the 70% scenario, the company said that the remaining 30% would be earmarked for possible acquisitions in the Powder River basin.

Encore plans to immediately begin upgrading the Bell Creek field infrastructure to handle higher water injection and production volumes, facilitate injection and production of CO2, and to reinject produced water and CO2 streams.

During the first 10 years of the project, the company plans to reactivate 275 wells and drill up to an additional 75 wells to install a five-spot CO2 injection pattern across the field on 40 acre spacing.

Its estimated cost for the project is about $425 million during the its life, with about $345 million being spent the first 20-24 months and the remainder being invested in years 5-10 as the project is phased in.

Encore plans to develop the project in seven phases depending on such variable as injection response, timing and magnitude of CO2 recycle, current maturity of well reactivation, reservoir repressurization needs, and surface facility requirements.

It said the project has an estimated $14/bbl finding and development cost.

Related Articles

Cenovus trims budget, slows oil sands work

12/16/2014 Cenovus Energy Inc., Calgary, is trimming its capital spending in response to declining crude oil prices and will slow development of some of its t...

Pengrowth starts commercial steam operations at Lindbergh thermal project

12/16/2014 Pengrowth Energy Corp., Calgary, reported the startup of commercial steam operations at Phase 1 of its Lindbergh thermal project in the Cold Lake a...

Husky reports start of steam operations at Sunrise oil sands project

12/12/2014

Husky Energy, Calgary, reported the start of steam operations at the in situ Sunrise Oil Sands Project in northeastern Alberta.

Kearl resumes oil sands production, Imperial reports

12/09/2014 Imperial Oil Ltd., Calgary, has resumed production at its Kearl oil sands operations in Alberta after a precautionary shutdown due to a “vibration ...

Nexen starts bitumen production at Kinosis 1A in Alberta

12/08/2014 China National Offshore Oil Corp. Ltd. reported the start of bitumen production at the Kinosis 1A (K1A) steam-assisted gravity drainage (SAGD) faci...

Cenovus receives approvals for Telephone Lake oil sands project

11/18/2014 Cenovus Energy Inc., Calgary, has received approval from the Alberta Energy Regulator (AER) and the province of Alberta for its wholly owned Teleph...

Imperial shuts down Kearl oil sands due to ‘vibration issue’

11/11/2014 Imperial Oil Ltd., Calgary, reported a precautionary shutdown of its Kearl oil sands operations in Alberta due to a “vibration issue” with the plan...

Oil sands 2014-38 outlay to top $514 billion

11/10/2014 Total investment in Canadian oil sands projects during 2014-38 will exceed $514 billion (2013 Can.), according to the Canadian Energy Research Inst...

ADMA-OPCO, BP sign EOR agreement

10/20/2014 Abu Dhabi Marine Operating Co. (ADMA-OPCO) and BP have signed an agreement on new technology for enhanced oil recovery (EOR) in carbonate reservoirs.

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected