Cano Petroleum Sees Positive Results from Phase 2 Testing at Nowata Field

Cano Petroleum reports that the second of three phases of laboratory testing to evaluate enhanced oil recovery (EOR) of its Nowata Field has been completed, yielding positive results. The linear core test results indicate that Alkaline-Surfactant-Polymer (ASP) flooding could potentially recover up to an additional 34% of the 58 million barrels original oil in place (OOIP) at the Nowata Field, located in northern Oklahoma.

"Although testing of Nowata is not complete, we are very encouraged with the Phase II results and feel we can deliver a successful chemical flood to much of the 58 million barrels OOIP at Nowata," said Jeff Johnson, chairman and chief executive officer of Cano.

ASP flooding is an enhanced oil recovery technique that can be employed to recover additional oil that is left behind after primary and secondary methods are either exhausted or no longer economical. ASP uses low concentrations of surfactants, polymers and other additives that are added to the waterflood operations already in place to "clean" stubborn or hard to reach oil from the rock, much like soap in a greasy pan.

In separate testing, a thorough experimental suite has narrowed the chemicals that will make up the Nowata ASP flood from several dozen possibilities to a promising few. These candidates will be used in the Phase III laboratory testing in radial corefloods. Radial coreflood testing will measure the effectiveness of the mixture in contacting more of the reservoir by flooding the ASP chemical solutions out from a center point, similar to an injection well in the field.

Phase III testing is expected to be completed within 60 to 90 days and should produce a viable flooding mixture for Nowata. Following the successful completion of Phase III, Cano will begin construction of an ASP pilot facility at Nowata.

Cano has three assets totaling 208 million barrels OOIP that meet specific criteria for chemical EOR, including its Davenport and Nowata Fields in Oklahoma, and its Desdemona Field in Texas. Cano acquired the Nowata Field on Sept. 14, 2004.

Company: Cano Petroleum more info
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