A $200,000 three dimensional reservoir study is planned in Oklahoma over East Binger Unit, the world's first commercially successful application of nitrogen injection pressure maintenance for enhanced oil recovery.
General agreement is that of 90-100 million bbl of oil in place in Pennsylvanian Marchand sand at about 10,000 ft, about 16% has been produced, says Cotton Valley Resources Corp., Dallas, which is acquiring Phillips Petroleum Co.'s interest in the unit.
Operating since the early 1980s, East Binger now produces about 1,000 b/d of sweet crude and 7 MMcfd of gas from 56 producing wells, state figures indicate. The unit, in Caddo County in the eastern Anadarko basin, has 25 injection wells and a 20 MMcfd cryogenic air separation plant.
The 3D reservoir simulation will be used to more closely estimate remaining reserves and optimize production the next 10-20 years.
Cotton Valley's current Binger reserves estimate is 1-2.5 million bbl of oil, gas, and natural gas liquids, net to the interest it is acquiring.
Exchanging interests
Cotton Valley acquired oil and gas interests in the Zama Lake area of Alberta from Paramount Resources Ltd. and exchanged that property with Phillips for cash and a contract to purchase an interest in East Binger Unit.
Cotton Valley received the right to purchase for $4 million Phillips's 23.4% interest in the EOR project. It will also obtain all of Phillips's interest in the other shallower zones in about 3,000 net acres of leases Phillips contributed to the unit.
Cotton Valley would become unit operator. The deal is to close by May 31.
Cotton Valley also holds interests of 50-100% in Northeast Alden field in Caddo County, which produces oil from Bromide and gas from Arbuckle.
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