The front end engineering and design (FEED) study will include cost estimates for the installation and operation of surface facilities to support the proposed pilot CO2 flood and processes required for the implementation and operation of the pilot. The pilot flood design will include components for the re-injection of any produced CO2 and will maintain a closed loop system of operation.
On a parallel course the Company is conducting an in-house reservoir study to determine the location of, and injection parameters for, the pilot project. At the same time, the Company is communicating with the New Mexico State Land Office and the New Mexico Oil Conservation Division to ensure that all required permits will be timely filed.
Over the past two months the Company has been conducting a workover program at the Milnesand and Chaveroo fields with current production increasing to approximately 130 boepd. Several additional wells are expected to be brought back on line in the near term.
EOR Inc.'s President and CEO Mr. Barry Lasker reports, "The Nicholas Consulting Group is a well known engineering firm in the Permian Basin and has considerable experience with the design and implementation of CO2 floods. We are pleased to be working with the Nicholas Group to get the ball rolling on our CO2 pilot floods and we look forward to reporting ongoing milestones. We are also pleased that production from our workover program has increased as expected and that additional production enhancements can be anticipated down the road. With current oil prices in the $80/barrel range it behooves us to accelerate the workover program wherever possible."
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