Enhanced Oil Resources Inc. recently announced the signing of a binding Purchase and Sales Agreement to purchase a producing oil field in New Mexico for $4.5m, from which it is estimated that the company could recover an extra 31 million barrels of oil using innovative CO2 injection processes.
The acquisition covers an 800 acre unit in a 2,400 acre mature oilfield and is expected to close on or before 15th June 2008 and will be immediately accretive to cash flow. The effective date is 1st May 2008.
The field is currently producing approximately 35 barrels of oil per day (bopd) and to date, the unit has produced around 22 million barrels of oil (MMBbl) out of the field’s previously recovered total of 44 MMBbl, a 35% recovery of the estimated 125 million barrels of original oil in place.
Enhanced Oil Resources’ independent enhanced oil recovery consultants completed a proprietary screening study of the field and estimated that the field could recover an additional 31 MMBbl using state of the art CO2 injection processes. It estimates that the field has the potential, once fully flooded, to reach an EOR (enhanced oil recovery) peak production rate of more than 8,000 bopd and the company intends to initiate a pilot CO2 flood of the property in the next seven months.
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