Magellan has begun a new series of infill wells at Poplar Field in Roosevelt County. The aim of this drilling program is to boost Magellan’s production levels while providing useful data for implementing a CO2-enhanced oil recovery pilot.
CO-2 is gradually becoming a more popular method of oil recovery and is seen by the US Department of energy as a means to reduce dependence on foreign oil while simultaneously reducing carbon footprint. CO-2 is carbon dioxide. The process used by Magellan and other companies injects the gas, included in the family of greenhouse gases considered pollutants in the air, into the ground to push the oil closer to the surface. A 2010 primer from the Department of Energy was produced as a result of ongoing studies about how CO2 enhanced oil recovery is more economical than chemical or thermal recovery. Last year there were over 100 projects using CO2, mostly in the Texas area on wells that have long produced and operators are working to get the remaining oil out of the ground. Those projects last year injected 2 billion cubic feet of CO2 and produce over 280,000 BOPD. The difference in the Magellan project is that these are new wells. The Department of Energy says they hope that CO2 injection projects will play a role in helping them meet the twin challenges of reducing dependence on foreign energy sources and reducing emissions of greenhouse gases.
The first infill well, EPU 119, was completed by Magellan during the week of October 17th in the B-2 zone of the Charles formation. Swab testing indicates oil production of approximately 45 barrels per day. Following several weeks of pump-testing, Magellan will evaluate a second interval in this well given the significant upside potential in several zones behind pipe.
Magellan will continue to communicate significant operational results to the market as they occur. Going forward, Magellan will release information on partner activity, marketing, and other material events only as developments become definitive.
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