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Elk Petroleum nearing commencement of oil production in Wyoming, U.S.

Published: 14:19 27 Sep 2017 AEST

Grieve well
Production expected to commence in late 2017 to early 2018

Elk Petroleum Limited (ASX:ELK) is heading into the final phases of field development at the Grieve CO2 Enhanced Oil Recovery (EOR) joint venture project in Wyoming, with the construction well advanced.

The offsite fabrication activities are nearing completion with the final deliveries of pipe works expected in early October.

Elk is focused on the redevelopment of historically producing conventional oil fields to produce significant remaining oil by applying EOR methods.

The Grieve CO2 EOR project development is nearing completion with the production expected to commence in late 2017 to early 2018.

Importantly, the installation of all major process equipment, process building mechanical construction and pipe works are fully complete.

Upon completion, the Grieve CO2 EOR Project will include 24 active wells. This will include 10 oil production wells and 10 CO2 or water injection wells.

READ NEXT: Elk Petroleum raising cash for the acquisition of Greater Aneth Oil Field, Utah

Earlier this month, Elk successfully completed a placement to institutional, professional and sophisticated investors to raise $27.5 million.

The funds raised will be used to support Elk’s acquisition of the Greater Aneth Oil Field in Utah, U.S. from Resolute Energy Corp (NYSE:REN) for US$160 million (circa $200 million).

The Aneth Oil Field is ranked the 86th largest oil field in the U.S. by proven reserves and is one of the largest carbon dioxide enhanced oil recovery (CO2 EOR) projects in the Rocky Mountains.

The project has a 30-year operating history and circa 450 million barrels of oil cumulative production to date.

Elk’s acquisition adds circa 59 million barrels of 2P oil reserves and 6,500 barrels of oil equivalent per day of current oil production.

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