Operations

The best CO₂ EOR floods have two major attributes:: miscibility and contact. We believe our innovative use of horizontal wells will allow for optimal hydrocarbon recovery, resulting in significantly greater hydrocarbon production compared to conventional straight-hole EOR methods. We will be using Earth’s natural layering to spread the injected CO₂ seeking optimal dispersion, which should significantly improve CO₂ contact with oil in place and result in enhanced hydrocarbon recovery.

When CO₂ is injected into the ground, it tends to disperse laterally due to permeability “layering”. It is then forced upward, improving the contact area and increasing oil recovery. The distance between the injector and the producer is short, resulting in a quicker response. In comparison, injectant CO₂ in vertical wells tends to bypass large portions of the reservoir due to permeability “fast lanes”, leaving large amounts of oil unswept. The distance between the injector and the producer is wider, resulting in a slower response.

We believe our anticipated recovery factor of the stacked horizontal well method should be in the range of 55-60% of the oil-in-place, compared to 23-45% achieved by conventional EOR flooding using vertical wells.

Our project will be developed using what is known as “carbon capture utilization and storage” or “CCUS”, which, under current federal law, provides a 12-year tax credit of $60 per metric ton of captured CO₂. This tax incentive creates an intersection of opportunity for CO₂ emitters and CCUS projects of our magnitude. The use of anthropogenic (man-made) CO₂ will lead to an ultra-low if not carbon-neutral, or carbon-negative crude oil. The thickness and size of our reservoir should make us a significant CO₂ storage site.