Denbury adds 1 tcf of carbon dioxide reserves

By OGJ editors
HOUSTON, Oct. 12
-- Denbury Resources Inc., Dallas, has drilled three more wells in the Jackson Dome area of Mississippi in 2010 to hike carbon dioxide deliverability and proved reserves.

They are the Waggoner 35-14-1 and Anderson Estate 36-9-1 wells in Gluckstadt field and the Pearl River 29-16-1 on the DRI Dock prospect, which added a combined 1 tcf of CO2 proved reserves during the year.

The company also completed 3D seismic evaluation and production testing on the DRI Dock prospect, which confirms the original proved reserve estimate of 400 bcf of CO2 reserves for the prospect. Further drilling on the DRI Dock prospect may add reserves but most likely greatly less than originally predicted in estimating the prospect’s potential.

The Waggoner well was drilled to add deliverability from Gluckstadt and is expected to produce at 50 MMcfd based on initial tests. The Anderson well was drilled across a known fault, and the initial logging results indicate the reservoir pressure in the well is virgin pressure and thus is not in communication with the existing wells in Gluckstadt.

Based on the Anderson well’s net pay and the reservoir’s expected areal extent estimated by 3D seismic, the company estimates this fault block contains 600 bcf of CO2 proved reserves.

The additional 1 tcf is expected to provide Denbury with nearly enough CO2 to flood all existing phases in the Gulf Coast, Phases 1 through 9.

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