The acquisition is the first of several oilfields the Company is targeting as part of its strategy to build a substantial EOR reserve base in the Permian Basin for CO2 flooding.
The acquisition covers 15,000 acres in a 19,000 acre mature oilfield that has produced approximately 24 million barrels of oil to date, leading to only 14% recovery of the original 180 million barrels of oil in place. The Company's independent EOR consultants, Advanced Resources International (ARI), has estimated that the field could recover an additional 34 million barrels of oil using state of the art CO2 injection processes. ARI also estimates that the field has the potential, once fully flooded, to reach an EOR peak production rate of over 10,000 barrels of oil per day. The Company intends to initiate a pilot CO2 flood of the property following the completion of the Company's winter drilling program at the St Johns helium and CO2 field located in Apache County, Arizona and Catron County, New Mexico.
Mr. Barry Lasker reports "This is a milestone day for Ridgeway. Our mission is to build a reserve base in New Mexico where significant EOR potential exists and to leverage our vast CO2 resource into opportunities that will add significant value to the Company. The acquisition of this field is a major execution point for the Company and bodes well for our ability to acquire additional EOR resources in the future. We are actively pursuing additional resource opportunities within this area and to keep our competitive advantage we have elected to keep details of the location and terms of the transaction confidential at this time."
Ridgeway Petroleum is a development stage, enhanced oil recovery (EOR), company that controls approximately 200,000 acres of land within the St Johns Helium/CO2 field in Arizona and New Mexico where the Company is developing what is thought to be the largest undeveloped resource of helium and carbon dioxide gases in North America. Independent engineering firms have estimated that the St Johns field contains approximately 15 trillion cubic feet of in place resources, with a potential recoverable resource of 5 trillion cubic feet. Development of the project could result in the Company becoming one of North America's largest CO2 suppliers and EOR producers. The Company's strategic focus for CO2 delivery and EOR production is the Permian Basin where significant potential exists for enhanced oil recovery from mature, depleted oil fields.
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